The Services Directive

1. What is the Services Directive?

The Services Directive defines the rules and conditions that apply to entrepreneurs wishing to establish a business or perform temporary services on the EU internal market. To facilitate freedom of movement throughout the EU/EEA* area, member states must eliminate weighty and unnecessary bureaucracy, simplify administration for service providers and strengthen consumers' rights.
* the 27 EU member states, plus Iceland, Liechtenstein and Norway.

2. How does the Services Directive affect me as an entrepreneur?

It allows you to compete on the European market on a fairer basis. The Services Directive is designed to facilitate the long-term establishment of businesses and more temporary service provision on the EU internal market. The purpose of the Directive is also to remove various barriers to trade and simplify administration for entrepreneurs.

3. Can I sell services in Sweden without setting up a business there?

Yes, but your business must already be established in another EU/EEA country.

4. Does the Directive only apply to services I sell to private consumers?

No. The Directive applies to services provided both to businesses and consumers.

5. What sectors are covered by the Directive?

Examples of services covered by the Services Directive include:

• Business services (management consultancy, certification and testing etc)
• Facilities management, including maintenance and safety
• Construction, including services of architects
• Real estate services, such as estate agencies
• Tourism (services of travel agencies and tour guides)
• Leisure (services provided by sports centres and amusement parks)
• Hotels, restaurants and catering
• Information services (web portals, news agencies and publishing services)
• Training and continuing training services
• Hiring and leasing services (e.g. car rental)
• Household support services

6. What sectors are not covered by the Directive?

The Services Directive does not apply to labour law, taxation or criminal law. A number of areas are not covered by the Directive. These include:

• Services financed mainly through taxes (e.g. social services and healthcare)
• Services of temporary work agencies
• Financial services
• Security services
• Transport services
• Certain gambling activities
• Audio-visual services and radio broadcasts