Dropshipping rules in Sweden

Dropshipping has become a popular business model in Sweden, but requires careful navigation through legal requirements, tax obligations and consumer rights. This article will give you a thorough overview of everything you need to know to run a legal and successful dropshipping business in Sweden.

Legal registration requirements

Company registration and structure

To start dropshipping in Sweden, you must first register your business with The Swedish Companies Registration Office. You can choose between different business forms:

Sole proprietorship (sole trader): Easiest to set up, but involves personal liability for company obligations.
Public limited company (limited liability company): Requires a minimum capital of SEK 25,000, but limits your personal liability.

All Swedish dropshipping companies must be registered in the Swedish Companies Registration Office's CVR register. The choice between sole proprietorship and limited liability company affects tax liability and personal responsibility.

F-tax and EORI number

You need to apply for F-tax (F-tax form) at The Swedish Tax Agencywhich means that you are responsible for paying taxes and social security contributions on your income.

To run a dropshipping business in Sweden, you must fulfil the general registration requirements. If you run a sole proprietorship, you usually need authorisation for F-skatt.

For imports outside the EU, an EORI number (Economic Operators' Registration and Identification) is required, which in Sweden is identical to the CVR number.

You need to create an EORI number at Swedish Customs if you import goods from outside the EU. The EORI number is used in all customs declarations for import/export to third countries and is required before you can fulfil customs declarations on shipments to/from Sweden.

VAT and tax liabilities

VAT registration

With an annual turnover above 80,000 SEK, VAT registration is mandatory. However, this figure has been updated to a higher limit:

In Sweden, businesses must register for VAT unless the annual turnover is below the threshold (around SEK 120,000 from 2025).

OSS scheme for EU sales

If you sell to customers in other EU countries, special rules apply:

For sales to other EU countries, the EU's One Stop Shop (OSS) scheme simplifies VAT reporting for cross-border sales. For sales over €10,000 per year, businesses must either register in each country or use OSS for centralised reporting.

When you sell to private individuals in other EU countries, the EU distance selling rules come into effect: you must add Swedish VAT until you reach the threshold (99,680 SEK/year). For larger sales, you must instead charge the buyer country's VAT - either by registering for VAT in those countries or by using the OSS (One Stop Shop) scheme and reporting everything via the Swedish Tax Agency's e-service.

Import OSS (IOSS) for non-EU trade

If the supplier is outside the EU but the customer is in the EU, in many cases you can use Import OSS (IOSS). For small orders under €150, you can voluntarily register in IOSS and charge VAT at the buyer's country's rates at the time of sale, allowing the supplier to quote your IOSS number at the border.

Customs and import duties

Customs duties and VAT on imports

When you dropship goods from outside the EU to customers in Sweden or the rest of the EU, the goods must be cleared through customs upon import. Goods with a total value over approximately 1,800 SEK may be subject to customs duties (duty rate typically 0-20 % depending on the type of goods). VAT is always payable when importing goods from third countries, regardless of the value of the goods. VAT is calculated on the price of the item plus freight and any customs duties (usually 25 % in Sweden).

Clearance fees and "customs surprises"

In addition, transport companies often charge an extra clearance fee (typically around 125 kr.) to handle the customs declaration. For the seller, it is important to realise that the customer may encounter these additional costs ("customs surprises") if you do not use IOSS.

When using non-EU suppliers (e.g. China), customers should be informed about potential customs fees, VAT and import duties. Unclear communication on this is a frequent cause of complaints.

Consumer rights and returns management

14-day cancellation policy

According to the Distance Contracts Act, consumers have the right to return goods without justification within 14 days of receipt. Sellers must clearly inform about this right and cover return shipping costs, unless otherwise agreed. Lack of information can extend the deadline to up to 12 months.

As with regular online shopping, the Swedish Distance Contracts Act applies. Consumers generally have a 14-day right of cancellation (ångerrätt) for online purchases. This means that the customer can return the item within 14 days of receipt without reason and get a full refund. If you do not clearly inform about this right and how to exercise it, the cancellation period can be extended - in the worst case up to one year.

3-year warranty

Swedish consumers have the right to complain about defects for up to 3 years after purchase. For the first 6 months, the burden of proof lies with the seller, after which it shifts to the customer.

All products must be delivered with a completion guarantee (warranty) for at least 3 years after the date of purchase. Consumers can complain about faults or defects in the product during this period.

Product liability and CE marking

Product safety and CE marking

As an importer, you are responsible for ensuring that products comply with EU safety standards (e.g. CE marking). Insufficient documentation can lead to fines of up to 10% of annual turnover.

As a retailer, you are responsible for the products you sell. According to the Swedish Product Safety Act (Produktsäkerhetslagen) and the Product Liability Act, you may be liable for damages if a product is dangerous or does not fulfil safety requirements and causes damage.

CE marking is mandatory for certain product categories in the EU single market (e.g. toys, electronic devices, personal protective equipment, etc.). You must ensure that imported goods fulfil relevant EU standards and bear the CE mark if required.

Product quality verification

To ensure product quality, you should place physical sample orders by ordering a minimum of 3 of the same item to test consistency in quality. You can also use factory inspection via third-party services like QIMA to conduct unannounced quality checks at the supplier.

You should also require documentation for CE marking, REACH (chemicals) and EN 71 (toys) according to EU regulations.

Supplier selection and risk management

Supplier verification

Third-party inspection services such as SGS or Intertek are recommended to verify compliance.

When choosing suppliers, you should:

Verify company registration via Bolagsverket.
Check if the supplier is a member of industry organisations such as the Swedish Trade Federation.

Due Diligence processes

Due Diligence Processes include:

Certificate verification: Check ISO 9001 or BSCI certificates.
Financial Stability: Use credit rating agencies such as UC or Bisnode.
Quality tests: Perform sample orders and laboratory analyses.

Contractual clauses

Contractual clauses should include:

Liability for defective goods: Determine the supplier's liability.
GDPR compliance: Ensure data protection when sharing customer information.

Enter into contracts with clauses for minimum 200% compensation for wilful counterfeiting. You can also use the EU IP Enforcement Portal to screen suppliers for past IP infringements.

Technology integration

Automated platforms and order management

Tools like Shopify Dropshipping or Vendino provide real-time inventory integration, automatic order processing and dynamic pricing. This reduces error rates to below 0.5% and order processing time to under 15 minutes.

Dropshipping requires solid IT solutions and co-operation with suppliers. Most e-commerce platforms (e.g. Shopify, WooCommerce, Wix) have apps or modules that can integrate directly with dropship providers. For example, through Shopify you can automate order transfers to suppliers and keep track of freight booking.

Inventory management and synchronisation

Since you don't have your own stock, continuous synchronisation with the supplier's inventory is required. Otherwise, you risk selling items that are out of stock with the supplier. In practice, you should agree with the supplier to provide current stock levels via their system or use a service that updates the status automatically.

Blockchain for traceability

Implementing distributed ledgers documents product origin, customs declarations and quality test results, reducing legal risk by up to 89%.

Blockchain tracking systems to document the supply chain and image recognition software to compare product images with original designs can help reduce the risk of counterfeit goods.

GDPR and personal data protection

As a dropshipper, you process personal data about your customers (name, address, possibly email, phone number, etc.) in connection with the sale. You must comply with GDPR: the processing must be lawful (typically justified by the customer's purchase contract), the data may only be used for the purpose for which it was collected (delivery, customer service, etc.), and the data must be protected against misuse.

Pay special attention to the fact that when dropshipping, you often pass on the customer's personal data to third parties (suppliers or freight forwarders). If these parties are located outside the EU/EEA, this is considered a third country transfer of personal data. IMY emphasises that such transfers may only take place under strict conditions.

Common errors and solutions

Top 3 Mistakes:

Failure to register for VAT (57% of startups).
Unclear communication about customs fees (37% complaints).
Insufficient product documentation (31% by electronics importers).

Solution strategies:

Use automated customs calculators on the website.
Create FAQ section with detailed shipping information.
Integrate live chat for instant customer support.

Suppliers in Sweden

To find reliable suppliers in Sweden, it is crucial to combine local networks with international platforms:

Local specialists: BrandsGateway and Swedish Dropshipping Network are recognised for their wide product range and integration with Swedish e-commerce platforms. They often offer favourable shipping rates within the Nordics.
EU-based platforms: Spocket and AutoDS provide access to suppliers with warehouses in the EU, minimising customs issues and delivery times to Swedish customers.
Global marketplaces: AliExpress and Alibaba can be used to find niche products, but require careful due diligence to ensure delivery quality.

Optimisation of delivery times

Fast delivery is crucial in the Swedish market context:

Local warehousing solutions: Choose suppliers with warehouses in Sweden (e.g. Printful's Stockholm facility) for 1-3 day delivery.
Supplier integration: Use tools like DSers to automatically synchronise inventory and tracking updates.
Freight partners: Negotiate consolidations with PostNord or DB Schenker for volume discounts.

68% of Swedish consumers expect delivery within 3 business days.

Conclusion

Dropshipping in Sweden is a legal and potentially profitable business model, but requires thorough preparation and compliance with the relevant regulations. By focusing on transparent communication with customers, thorough supplier verification, proper product documentation and effective technology integration, you can minimise risks and build a sustainable business.

Remember that even if you don't physically handle the goods, you are fully legally responsible to your customers and the Swedish authorities, so thorough planning and compliance are essential for long-term success.

Useful resources

The Swedish Tax Agency - For VAT registration and tax information
The Swedish Companies Registration Office - For company registration
Swedish Customs - For customs rules and EORI registration
The Swedish Consumer Agency - For consumer rights and product safety
Data Inspectorate (IMY) - For GDPR compliance