New VAT on apps gives rain million for the Swedish government – IDG.se

New rules for the sale of apps, streaming services and video games gave revenues far exceeded expectations for the Swedish government. Last year, the Treasury 750 million plus because the Swedes purchased apps and other digital services.

Since January 1, 2015, new rules for EU companies that sell digital services. Previously, they paid the tax in the countries where they appeared, but now, the VAT is reported in the Member State where the purchaser lives.

The figure of 750 million is expected in the euro’s average exchange rate in 2015 and became something of a surprise to the state. The Ministry of Finance had put its forecast of modest SEK 50 million for last year.

– It has not been possible to obtain this data, and you can not build a budget on guesswork. Therefore, they chose to make a cautious forecast, believe Kerstin Alvesson which is the legal expert in Tax.

Read also: Skattesmäll for Kickstarter campaigns – new rules for crowdfunding introduction

In the same way there is no forecast of how much more or less money Sweden will be able to earn on appmomsen in the long run.

– If the trade of digital services increases, then also these revenues to increase, but it is only conjecture, says Kerstin Alvesson.

Appmomsen is a broad term that includes many different types of digital services. Mobile apps, games and streaming services are few, but the Tax Agency can not deduce how much tax each type of service contributed because it is not specified.

The Swedish consumers have already paid the VAT on their app purchase, but then the money ended up in the country where the business is located. Many people who sell digital services has therefore placed its operations in countries with low tax, such as Luxembourg, something they will enjoy for longer.

While Sweden receive money via appmomsen, paid Sweden out about SEK 128 million to other EU countries for digital services sold here.

Read also: Smart watches and bracelets are too ugly to break through

the big difference between how much tax money owed to Sweden, and the amount paid is not necessarily that our apps are selling poorly. When Swedish apps sold through Apple or Google stores it does not count as being sold from Sweden.

– We know that we have many talented Application providers in Sweden, but with the regulation that applies within the EU, it market places listed as the sellers, not our local Application providers, says Kerstin Alvesson.

Facts

Appmoms:

Since January 1, 2015, companies in the EU selling digital services to pay VAT in the country where the buyer is located.

The companies record the sale in a new system called MOSS (mini One Stop Shop), and the Tax Agency are all the industry’s major players and the majority of the smaller firms connected.