Sweden: Proposals to amend measures under “chemical tax”

A proposal to simplify certain measures under the “chemical tax” would revise the tax treatment with regard to “white goods” and certain electronic products.

The “chemical tax” is imposed on chemicals associated with or used within certain electronic products that are sold in or brought into Sweden, 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”—and this can shift responsibility for the chemical tax to a party further down the supply chain.

Also, there can be an opportunity to reduce the amount of the chemical tax when an in-scope product contains 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.

Under the proposal:

• Products that do not contain bromine or chlorine would be allowed a 50% deduction, and products that do not contain phosphorus would be allowed a 95% deduction from the chemical tax.
• Tax would be imposed at SEK 11 per kilogram of the taxable item's net weight for white goods and at SEK 154 per kilogram for other electronics, for a maximum of SEK 470 per item.
• The general rule on exemptions from the chemical tax would be revised so that liability does not arise for goods already in Sweden when previously owned by someone other than a warehouser, taken to a point of sale for retail sale or used for purposes other than a sales purpose.
• A general exemption from the chemical tax would be introduced for goods manufactured before 1 July 2017.
• The tax liability for warehousers would be extended so that tax liability arises when a product is taken to a point of sale that is not its own.
• A system of flat-rate taxation would be imposed for imports and unauthorized importations when it is not possible to read the net weight of an item from the customs declaration. If taxation has taken place according to a standard, a taxpayer would be allowed two months to submit in writing, to the Swedish Customs, information about calculating the tax pursuant to the standard rules.

The amendments regarding certain imports are proposed to be effective 31 December 2022, whereas the other amendments are proposed to be effective 1 July 2023.

Read a February 2022 report (Swedish) prepared by the KPMG member firm in Sweden