Invoice VAT - Complete Guide for Businesses

VAT (Value Added Tax) on invoices can seem complicated, but with the right knowledge, it's straightforward. Here's everything you need to know.

What is VAT?

VAT is a consumption tax added to goods and services. As a business, you collect VAT from customers and remit it to tax authorities.

VAT in Scandinavian Countries

Norway

• Standard rate: 25%
• Reduced rate: 15% (food)
• Low rate: 12% (transport, hotels)

Sweden

• Standard rate: 25%
• Reduced rate: 12% (food, hotels)
• Low rate: 6% (books, transport)

Denmark

• Standard rate: 25%
• Some services are VAT-exempt

When Must You Charge VAT?

You must charge VAT when:

• Your turnover exceeds the registration threshold
• You're voluntarily VAT registered

Thresholds vary by country:

• Norway: 50,000 NOK
• Sweden: 80,000 SEK
• Denmark: 50,000 DKK

How to Show VAT on Invoices

An invoice should clearly display:

1. Amount excluding VAT
2. VAT amount per rate
3. VAT rate percentage
4. Total amount including VAT

Cross-Border VAT

When invoicing customers in other EU countries:

• B2B: Usually reverse charge applies
• B2C: May need to charge local VAT rates

Use Fakturagenerator.com

Our invoice generator automatically calculates VAT for you. Select the VAT rate, enter amounts, and let the system do the rest.

Correct VAT handling on invoices is essential for your accounting and tax compliance.