Sweden to extend 'chemical tax' to B2C goods sold by non-resident businesses

29 May 2020

From 1 October 2020, the Swedish government has confirmed the extension of its 'chemical tax' to cover goods sold directly to consumers by non-resident businesses in the country. 

Currently, foreign businesses providing ‘white’ and electronic goods such as refrigerators, dishwashers and vacuum cleaners directly to consumers in Sweden do not have to charge this tax on their sales. However, to remove the unfair advantage that this gives to non-resident companies over resident providers, the Swedish government propose that the tax will be applied to these types of transactions subject to an annual registration threshold of €100,000.  

The 'chemicals tax' has been in operation in Sweden since 1 July 2017 and is charged at between SEK 8 (approx. £0.69) and SEK 122 (approx. £10.50) per kilogram of eligible goods. It is designed to discourage the consumption of goods containing large amounts of dangerous chemicals.