Price and VAT

Updated: 8/27/2014

The car prices as well as the VAT are often lower in other EU countries. In addition, newer cars are often higher taxed outside of Sweden, which is something Swedes can profit from. 

Denmark, for example, has relatively high taxes on new cars. This makes Danish cars much cheaper. If you buy a car in another EU country, you pay tax for it in Sweden. Naturally, the exchange rates also affect the prices on imported cars.

You should be aware of, however, that a car trader might offer you a lower trade-in price when you want to sell an imported car here in Sweden.

Periodically, the European Commission makes price surveys of new cars in the EU countries. Follow the link on the right side of this page to go to the surveys.

VAT when buying a new car or motorcycle

When buying a new vehicle like a car or motorcycle, you pay VAT in your home country. You are obliged to report the purchase to the Swedish Tax Authority. The VAT has to be declared and paid 35 days after the purchase, at the latest. The VAT is 25 % of the purchase price, (the price stated on the invoice).

The vehicle is to be considered new if it has been driven less than 600 Swedish miles or has been in traffic less than 6 months.

VAT when buying a second hand car

If you buy a second hand car in another EU country and import it to Sweden, you pay VAT in the country where you buy the car.

In Sweden, the VAT on second hand cars is 25% of the purchase price, including all extra equipment. In most other countries it is lower, which makes the prices on second hand cars lower abroad.