(edit title) Claiming back VAT Which kind of companies can do this? Options

[Eddymu]

I have been doing some research in to the different business types and my question pertains to reclaiming VAT. Specifically, which types of companies can reclaim VAT.

For example, if I was to register as a sole trader and obviously maintained separate finances for my company could i claim VAT back on parts/equipment i purchase to make goods or would i have to be registered as an aktiebolag (AB) company?

Maybe i'm looking in the wrong place but i can't seem to find the answer on the skatteverket or bolagsverket websites.

Thanks to anyone that can help me out.

[Rick Methven]

Whatever type of company you have you will be registered for MOMS (VAT). It is treated as part of your tax and you declare the amount of MOMS you have paid and received during the year in your declaration. If you pay more than you receive you will get a rebate that is included in your tax returns

[Eddymu]

Thanks for the quick reply.

Just so I can get my head around this a bit more (yes, I know I should speak to an accountant) but humour me.

As a few examples/questions based on being MOM’s registered:

- If I was purchasing equipment that I used within the business for business purposes can I purchase that from a vendor ex.vat/moms?

- If I purchase supplies to be used in a commercial project, the company who pay me for the project would most likely pay me the ex.moms cost (or do they pay including moms?) – in the UK I know a Ltd VAT registered company would pay an invoice excluding VAT.

- Same as above but the project is residential, the customer would pay including MOM’s – is this when I balance out between MOM’s credited and MOM’s debited?

[Furu]

- If I was purchasing equipment that I used within the business for business purposes can I purchase that from a vendor ex.vat/moms?

In Sweden - No, But you claim the VAT back later on.

In EU - Yes, by quoting a valid VAT Number. You include that in MOMS declaration debit and credit (double entry).

- If I purchase supplies to be used in a commercial project, the company who pay me for the project would most likely pay me the ex.moms cost (or do they pay including moms?) ... (show full quote)

- If I purchase supplies to be used in a commercial project, the company who pay me for the project would most likely pay me the ex.moms cost (or do they pay including moms?) – in the UK I know a Ltd VAT registered company would pay an invoice excluding VAT. ... (hide full quote)

In Sweden - You mush charge VAT.

In EU - You can charge ex VAT if they give you a valid VAT number and you verify that with Skatteverket. You include that in MOMS declaration debit and credit (double entry).

- Same as above but the project is residential, the customer would pay including MOM’s – is this when I balance out between MOM’s credited and MOM’s debited?

When you do a Moms declaration with SKVT you either get a refund if you paid more or make a payment if you collected more.

As of Jan 1 2010 all VAT paid outside Sweden can be claimed through SKVT.

http://www.skatteverket.se/blanketterbrosc...9800044330.html

[Eddymu]

Furu / Rick, thanks for the help.

A good starting point, albeit a little more complicated than I imagined.

[Furu]

If you plan to register Akitebolag as you stated in your post, the rules are changing.

From 01 Apr 2010 - Aktie Capital reduced to 50,000kr

http://www.bolagsverket.se/in_english/info...ital/index.html

From 01 Jul 2010 - Proposals are in place to have a mandatory Auktorised Revisor Auditor excluded from Small Companies.

http://www.bolagsverket.se/in_english/news...18_auditor.html

[Eddymu]

If you plan to register Akitebolag as you stated in your post, the rules are changing.. From 01 Apr 2010 - Aktie Capital reduced to 50,000kr

Thanks again. That is really good news.

Initially, if I go for this I'd start as sole trader - I presume the same applies regarding reclaiming of MOMS?

If it works out then I'd obviosuly get a lot more serious and register an AB.

[Furu]

MOMS - Same rules apply as long as you register for MOMS when you register the company.

Sole Trader - The taxes are a lot higher in Sole Trader, around 50% because you pay the social cost for yourself.

Partnership - Same as above but you split between two people.

AB - The taxes are less. The company tax is around 26% of Net Profit.

Option 1 - You can pay yourself dividend rather than salary upto 100,000kr (this was 1 year ago) and pay tax only at 30%. The negative thing about this is that you cannot claim unemployment and sickness benefit if you choose the dividend route.

Option 2 - You can pay yourself salary and you pay your 30% (average income tax) and company pays your social (around 20%). You have same unempoyment and sickness benefits as if you were employed by someone else.

The rules for personal assets transfer to AB are very strict and you should check with an Auktorised Revisor. For e.g. if you own an equipment and you wanted to transfer that to AB.

[Eddymu]

Some really good advice you have given there.

I will make an effort to speak to an advisor before making any decisions, feels like I just stepped in to a jungle!

[lordmagneto]

I saw this post and had a quick question... I also have my own company here in Sweden, dataoncall.se. I would like to know if I use my personal car to go from job to job and I just purchased new tires for the car, can I declare the VAT (MOMS) for the newly purchased tires since I use the car for work purposes?

Thanks!
JD

[PDX]

You own the tires, not the company, right? Hence, no.

~~~PDX~~~