As of April 1st, the VAT on food is being reduced to 6%, except for food served at restaurants and similar premises. In those cases, the VAT rate remains 12%.

This leads to several changes regarding business representation. The Swedish Tax Agency has published new regulations, and we have implemented (or are currently implementing) them as effectively as possible. Note that there are some peculiarities in these new rules.

Takeaway and Catering (Non-Alcoholic) – 6%

For representation involving takeaway or catering without alcohol, a 6% VAT rate applies. Our system will recognize this percentage and allow a deduction up to the maximum amount of 18 SEK per person (6% of the 300 SEK net limit per person).

Representation at Restaurants

The VAT rules here remain the same as before: 12% VAT on food and 25% on alcohol. We already have a functioning calculation for the correct deduction in place and will continue to use it.

Mixed VAT Rates

In theory, it is possible to make a purchase involving all three VAT rates: 6%, 12%, and 25%. While unlikely in practice, if this occurs, the purchase should be split into multiple expenses. Examples include:

Catering with food and alcohol: 6% and 25%

Restaurant lunch with food and alcohol, plus takeaway for the office: 6%, 12%, and 25%

Since the system cannot reliably guess the correct mix of VAT rates, we will display an information text whenever we detect representation VAT higher than 6%, stating something like:

“New food VAT rates apply from April 1st. If you represented at a restaurant, you can create your expense as usual. If you ordered takeaway or catering, you should create two separate expenses: one for food and one for other items. Use 'Split receipt' to divide the total into two sub-amounts.”

What about the Simplified Standard Deduction?

For 6% VAT, there is a new standard deduction of 33 SEK per person. This is somewhat unusual, as the maximum deduction normally results in 18 SEK per person (see above). This standard deduction can only be used if the actual VAT is at least 33 SEK per person—requiring a net cost of approximately 550 SEK per person—which seems unlikely for takeaway (though perhaps not for catering). We have not yet implemented this new standard deduction but plan to do so.

Summary

Only 6% VAT: Create one expense; we will calculate the correct deduction.

Only Food and Drink at a Restaurant: Create one expense; we will calculate the correct deduction.

Other Combinations: Split the purchase into two (or more) separate expenses.