Business: VAT, margins and employee costs
See what remains after VAT and costs. Use a consistent price basis when calculating sales, margins and the cost of employing someone.
Last reviewed:
Distinguish revenue from profit
An invoiced amount is different from profit or cash you can withdraw. In a simplified example, SEK 1 000 sales excluding VAT minus SEK 900 costs leaves SEK 100 profit: a 10% margin. Check that all relevant costs are included.
Handle VAT consistently
Use the same VAT-inclusive or VAT-exclusive basis in quotes, calculations and invoices. Check the applicable VAT rate for the product or service with Skatteverket. A margin is misleading when prices and costs use different VAT bases.
Calculate the full employer cost
Gross salary is only part of an employee's cost. Add employer contributions and relevant holiday, pension, insurance, equipment and absence costs. Check current rules and agreements, then compare the total with expected revenue and capacity.
Sources used for this topic
- Sveriges Riksbank – current and historic reference rate
- Swedish Interest Act (1975:635), sections 6 and 9
- Swedish Tax Agency – employer contributions
- Swedish Tax Agency – 2026 amounts
- Swedish Tax Agency – VAT rates and exemptions
- Skatteverket – how ROT and RUT deductions work
- Swedish Tax Agency – car use for work
- Swedish Tax Agency – 2026 amounts
- Swedish Tax Agency – per diem
- Swedish Parliament – Annual Leave Act sections 16–16b
- verksamt.se – vacation pay and compensation
- Swedish Tax Agency – public service fee 2026
- Swedish Tax Agency – tax tables 2026