From 1 April, the VAT rate on food will be reduced to 6%, except for food served in restaurants and similar establishments, where the VAT rate remains at 12%.

This change leads to some adjustments regarding entertainment expenses. The Swedish Tax Agency (Skatteverket) has published new rules, and we have implemented them. There are, however, some peculiarities in the regulations.

The fundamental issue is that with three different VAT rates, it is impossible to calculate which specific rates are included in a total VAT amount. Therefore, users and administrators must manually specify the type of entertainment involved.

This document describes our implementation and best practices when creating entertainment expenses.

New entertainment types

Food for takeaway has a new VAT rate of 6%. To simplify reporting takeaway entertainment we have added three new types:

• Lunch (takeaway)
• Dinner (takeaway)
• Refreshments (takeaway)

Selecting these types activates the calculation logic for 6% VAT.

                                                       All types of entertainment for Swedish companies

Takeaway and catering (no alcohol) – 6% VAT

For entertainment involving takeaway or catering (without additional services) and no alcohol, the 6% VAT rate applies. We recognise this rate and allow deductions up to a maximum of SEK 18 per person (6% of the SEK 300 net limit per person). 

Entertainment types

Each entertainment category can use one or more types of entertainment. With 6% VAT, all types can be used, but we recommend the takeaway types.

• Lunch (takeaway)
• Dinner (takeaway)
• Refreshments (takeaway)
• Lunch
• Dinner
• Refreshments

Restaurant meals (no alcohol) – 12% VAT

For restaurant entertainment without alcohol, the VAT rate is 12%. We allow deductions up to a maximum of SEK 36 per person (12% of the SEK 300 net limit per person). Do not use "takeaway" types if the receipt shows 12% VAT. 

Entertainment types

Each entertainment category can use one or more types of entertainment. With 12% VAT you should not use takeaway.

• Lunch
• Dinner
• Refreshments

Restaurant meals with alcohol

The VAT rules remain unchanged here: 12% VAT on food and 25% VAT on alcohol (or other 25% goods). 

Flat-rate (Schablon): A flat-rate deduction of SEK 46 per person is applied automatically whenever it is more favourable. 

Entertainment types

Each entertainment category can use one or more types of entertainment. With 12% VAT you should not use takeaway.

• Lunch
• Dinner
• Refreshments

Mixed VAT rates: 6% and 25% VAT (e.g., Catering with alcohol)

If catering includes alcohol, or if takeaway food is combined with 25% VAT items, the VAT will consist of both 6% and 25%. 

We handle this in a few different ways:

• If the user selects takeaway, we know that the entertainment expense is based on 6% VAT. We apply logic that automatically uses the SEK 33 per person flat-rate if it is beneficial.
• If the user selects a standard entertainment type and the VAT amount is between 6% and 12%, we show an information message about mixed VAT rates, and that it could be useful to split the purchase in two or more expenses. Splitting the expense is not mandatory; see it as a recommendation.

Note: If the user selects a standard entertainment type and the VAT amount is higher than 12% of the total, we apply our legacy logic for restaurant entertainment, assuming the VAT rates are 12% and 25%. See Restaurant meals with alcohol.

Entertainment types

Each entertainment category can use one or more types of entertainment. 

• Lunch (takeaway)
• Dinner (takeaway)
• Refreshments (takeaway)
• Lunch
• Dinner
• Refreshments

Mixed VAT rates: 12% and 25% VAT

If the entertainment expense is for Meals with alcohol in a restaurant, the VAT amount will be made up of both 12% and 25% VAT. See Restaurant meals with alcohol above.

Mixed 6%, 12%, and 25% VAT

In theory, it is possible to make a purchase involving all three VAT rates: 6%, 12%, and 25%. In practice, this is unlikely to happen, but if it does, the purchase should be split into multiple expenses. For example: 

• Lunch at a restaurant with food and alcohol, plus takeaway food for internal entertainment at the office: 6%, 12%, and 25%. 

If the receipt only shows a total VAT amount, it is not possible to reliably calculate the correct mix of VAT rates. If the VAT amount falls within the 6–12% range, we will display an information text suggesting that it may be beneficial to split the receipt into several parts. In the example above, this would be: 

• One expense with 6% VAT for the items taken back to the office. 
• One expense with 12% and 25% VAT for the restaurant visit. 

Summary

• Only 6% VAT: Create an expense; use takeaway types for correct deductions. 
• Only 12% VAT: Create an expense; do not use takeaway types. 
• Catering with alcohol: Create an expense; use takeaway types. 
• Food and alcohol in a restaurant: Create an expense, do not use takeaway types.
• Other combinations: Use the "Split receipt" function to divide the purchase into two or more expenses. 
• Flat-rate amounts: We automatically apply the flat-rate (SEK 33 for 6%; SEK 46 for 12%) when alcohol consumption makes it economically advantageous. The higher the proportion of alcohol, the more favourable the flat-rate amount becomes. For both VAT rates, the break-even point occurs approximately when food accounts for 74% of the total amount.