Sweden’s tax on chemicals in certain electronics - Tax Tech can help

Sweden levies a tax on chemicals in certain electronic goods. The aim is to reduce the occurrence and spread of, and exposure to, dangerous flame retardants in people’s homes. PwC Tax technology can assist in complying with the tax.

Companies in Sweden that manufacture, receive or import duty-liable electronic goods for business purposes must pay excise duty on them. Tax liable goods are for example routers, laptops, telephones, computers, screens, other electronics and household appliances such as ovens, microwave ovens, refrigerators, freezers, washing machines, dishwashers, dryers and vacuum cleaners. PwC has seen that especially foreign large companies who are present in Sweden through small branches or subsidiaries can have a challenge in understanding how to comply with the tax. Even if the tax amounts are small it is important to comply as non-compliance can lead to tax surcharges and have repercussions for other taxes in Sweden (revocation of payroll tax permits, audits of corporate income taxes and VAT).

Tax liability arises for imported goods

In principle tax liability arises for each tax liable good that is imported or received from another EU country, but the tax can be deferred if the company becomes a so-called approved stockist. If so, the company can declare tax on a monthly basis, rather than for each duty-liable transaction. It is possible to reduce the excise duty payable on goods if they do not contain certain listed groups of flame retardants.

PwC’s tax engines can help

PwC’s tax engines can assist in identifying tax liable goods from the company's data and help prepare and file declarations. This will reduce cost and administrative burden and ensure compliance with the environmental tax. By complying with the chemical tax the company’s overall tax risk is reduced and its ESG-profile increased.