Different types of taxes and contributions

• A tax: paid by a natural person or legal entity who has taxable earned income.
• F tax: paid by a natural or legal person who engages in business activity.
• Value added tax (VAT): paid by natural or legal persons selling goods or services which are subject to VAT in Sweden. Preliminary VAT is included in preliminary F tax when VAT is reported annually.
• Preliminary VAT: included in preliminary F tax when VAT is reported annually.
• Employer contribution: paid by the party who pays for the work in the form of cash or other benefits.
• Personal contributions: paid by a sole trader or partner in a trading partnership, i.e. a natural person with income from active business activity.
• Special payroll tax: paid by a natural person with income from passive business activity, or a retired person with income from business activity. Employers also pay payroll tax instead of employer contributions to employees who are retired.

Tax rebates for domestic work

Anyone purchasing domestic services or building work is entitled to claim the cost of the work against tax. Examples of domestic services include cleaning, snow clearance, mowing and child-minding. Building work includes building alterations and extensions, repairs and maintenance.

The tax rebate is limited to SEK 50,000 per person per year. It is therefore a good idea to ask the customer to produce information from the Swedish Tax Agency showing how much of the rebate has been used in the year-to-date. If two people own a home, they are entitled to SEK 50,000 each.