The history of VAT is not that long, but the first indirect tax is said to be customs. What is known is that customs have a history that at least stretches back about 5,000 years. When it comes to VAT, various ideas have been discussed over the years. Wilhelm von Siemens formulated thoughts around Umsatzsteuer as early as the 1910s. But it was the French who put modern VAT on the map in 1954.

History of the Swedish VAT

Over the years, Sweden has had various sales taxes, ranging from goods taxes to sales and finally to VAT, which was introduced on 1 January 1969. VAT in Sweden is undergoing constant changes. The pace of change has increased markedly since Sweden’s accession to the EU in 1995..

Some bigger mile stones

January 1, 1969, VAT law comes into force (1968: 430).
On July 1, 1979, the voluntary tax liability is introduced for the rental of real estate.
On 1 January 1991, the base broadening will take place. Then, in principle, all goods and services became subject to VAT.
On 1 July 1994, the new VAT law, NML, will be introduced

On 1 January 1995, Sweden joins the EU (then EC) VAT Act 1994: 200 enters into force in the entire EU adapted from. After that, changes come quickly.

Local reverse taxation will be broadened in 2021 to include sales of e.g. mobile phones above a certain value. Previously, investment gold, construction services, trade in waste and scrap of certain metals are also covered. This type of tax scheme is used almost exclusively to curb tax evasion and avoidance.