Sweden: Changes to “chemical tax” being considered | KPMG | GLOBAL

Sweden: Changes to “chemical tax” being considered

Sweden: Changes to “chemical tax” being considered

Sweden’s chemical tax applies to “white goods” and other electrical goods—such as computers, tablets, televisions, phones, games consoles, and routers. The government is considering some changes to the chemical tax that were proposed by industry representatives.

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Background

The chemical tax was effective 1 July 2017, and applies to two categories of products: (1) “white goods” and (2) other electrical goods (such as computers, tablets, televisions, phones, games consoles and routers).

The chemical tax is due from any business that manufactures the subject goods in Sweden, or brings “in-scope” goods into Sweden from either the EU or from outside the EU by import. There is an option to register as a “warehouser” that may shift the responsibility for the chemical tax to a party further down the supply chain. Also, there may be an opportunity to reduce the amount of the chemical tax when an in-scope product contain low levels of the potentially dangerous chemicals. In such instances, two deductions are available: 50% or 90%. The deduction percentage depends on the proportion of certain bromine, chlorine, and phosphorous compounds that are included within any circuit boards or plastic parts that are a part of an in-scope product. 

 

Read TaxNewsFlash-Europe

Changes under consideration

A 2018 memorandum reflects possible revisions to the chemical tax, and if enacted, these changes would have an effective date of 1 January 2019. Among the measures being considered are items for:

  • Simplifying the rules on entry from another EU country for non-warehouse holders – “registered recipient”
  • Clarifying an exemption from the chemical tax for previously taxed goods, to apply to all goods

The memorandum reflects there would be:

  • No change to the rule for application of the chemical tax for “used” electronic goods 
  • No change to the rules for a deduction or refund of the chemical tax on non-stockholders’ sales made abroad

 

Read a March 2018 report (Swedish) prepared by the KPMG member firm in Sweden

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