VAT in WooCommerce isn't complicated if you sell to Sweden. It gets more involved with EU sales and nearly headache-inducing with global sales. Let's start with the simple case.
Basic setup for Sweden
WooCommerce → Settings → General: store address in Sweden. Settings → Tax: enable tax. Standard tax rate: create a row with country code SE, 25%, name "Moms". That covers 90 percent of all Swedish online stores selling to consumers.
If you sell food, you need reduced tax rates: 12% for food and beverages, 6% for books and magazines. Create separate tax classes and assign products to the right class.
Prices including or excluding VAT
B2C: show prices with VAT. Consumers expect the price they see to be the price they pay. B2B: often prices excluding VAT, with VAT specified separately at checkout. Set under Settings → Tax → "Prices entered with tax" or "Prices entered without tax".
EU sales and OSS
If you sell digital products (or physical goods above the threshold) to consumers in other EU countries, the buyer's country's VAT applies. One Stop Shop (OSS) simplifies: you report all EU VAT through the Swedish Tax Agency instead of registering for VAT in each country.
The EU VAT Number plugin (official from WooCommerce) validates VAT numbers and removes VAT for B2B purchases within the EU. Mandatory if you sell B2B internationally.
Invoices
WooCommerce PDF Invoices & Packing Slips. Free plugin that generates PDF invoices automatically on order. Customize with your logo and company details. VAT is specified per tax class.
Record VAT reporting correctly. Consult an accountant if you sell internationally. The cost of advice is nothing compared to the cost of incorrect VAT handling.