Information about VAT
Updated over a week ago

Gigapay is a Swedish company, therefore:

  • Payments in Sweden will carry direct taxes and VAT.

  • International payments (outside Sweden) do not carry VAT



About international payments

If you own a company outside of Sweden, reverse charge VAT applies as it is the buyer (Gigapay), and not you as the seller of the service (the recipient) that reports the VAT.

This means that no VAT is being deducted from your payment. Hence the VAT will not be specified nor charged for your payment.


About payments in Sweden

  • For companies

If you own a Swedish company, the VAT that you will pay amounts to 25% in addition to your payment.

  • Waiting for VAT registration number

If you have applied for a VAT-number but still not received it yet, you will need to invoice the amount including VAT since you are still conducting VAT liable activity.

  • For Artists

In Sweden, payments to an artist who performs artistic work in front of an audience are generally VAT-free. This means that VAT generally should not be added to your invoice to Gigapay when you charge for an artist’s performance.

However, some clients still prefer to add on the VAT. If you are uncertain whether you should or should not charge for the VAT, double-check with your client before sending your invoice to Gigapay.

  • For Individuals

Individuals in Sweden get paid under the status of fixed-term employees. This means that Gigapay declares income tax and employer’s contribution for national social security purposes from your payment.

The amount to be deducted in taxes is 30%. Gigapay is usually not able to reduce the amount of taxes to deduct (circumstances such as "jämkning" may apply). However, if you wish to get a higher amount deducted, contact Gigapay support at support@gigapay.co or by clicking on the support chat in the bottom right corner at app.gigapay.se.

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