This applies to the purchase or sale of scrap metal
For the sale of scrap metal apply reverse tax liability. This means that it is the buyer — not the seller — who is responsible for reporting the VAT to the Swedish Tax Agency.
This is true when:
- The seller is registered for VAT
- The buyer is a VAT registered company
- The scrap falls within the Swedish Tax Agency's definition of scrap metal (e.g. copper, aluminium, iron, stainless steel)
Examples: Skrotify buys scrap copper from an electric utility company. Skrotify records the purchase excluding VAT, and accounts for both outgoing and input VAT in its VAT return. The seller invoices without VAT and indicates “Reverse tax liability” on the invoice.
Accounting for scrap purchases and sales
For sellers:
- Revenue is recorded as usual (excluding VAT)
- No outgoing VAT is recognized
For buyers:
- The cost of goods is recorded excluding VAT
- Extant VAT is posted on account 2614 (25%)
- Input VAT is posted on account 2641
Examples in accounting software:
Cost: 10,000 kr
Output VAT: 2 500 kr
Input VAT: -2 500 kr
Effect: 0 kr in actual VAT cost
Exceptions — individuals and persons not subject to VAT
If the seller is not VAT registered (e.g. a private individual) reverse tax liability does not apply. Then Skrotify pays out a gross amount without VAT, and reports control data if necessary.
