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Government Proposes Simplified VAT Rules for Second-Hand Trade and Food Donations

Erik Slottner (Photo: Government Offices)
VAT change on the way.

The government has presented a bill with proposals for simplified VAT rules. The purpose is to reduce the administrative burden on companies that sell second-hand goods or donate food. The legislative changes are proposed to enter into force in 2028.

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One of the main proposals concerns expanding the possibility of using simplified profit margin taxation. The method allows companies to calculate VAT on an aggregated profit margin for purchases and sales during a certain accounting period, instead of calculating VAT per individual item.

According to current regulations, simplified profit margin taxation can only be used when the profit margin for a single item cannot be determined. The government now proposes that the method also be applicable to goods with a purchase price of no more than SEK 10,000. In practice, this means that e-commerce companies and other actors who sell second-hand goods no longer need to calculate the profit for each specific item below this price limit.

Civil Minister Erik Slottner highlights the amended rules as a way to utilize resources and reduce waste.

Simpler VAT rules for the sale of second-hand goods and the donation of food mean that more fully usable goods that are currently discarded can be put to continued use, says Erik Slottner.

In addition to the changes concerning second-hand trade, the bill contains a proposal to abolish VAT on food donated to approved recipients who run social welfare activities.

The proposed amendments to the Value Added Tax Act are planned to enter into force on January 1, 2028.

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Editorial Staff
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