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Discount and VAT

For a discount, we multiply the price by the share we pay: a 30% discount on 450 kr gives 450 · 0.70 = 315 kr. We add VAT of 25% with · 1.25 and remove it with ÷ 1.25.

Years 7–9 and upper secondary · Updated

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Discount: how much do we pay?

The original price is the whole, 100%. With a 30% discount we pay 100% − 30% = 70%.

We want to know what we pay after the discount.

450 · 0.70 = 315

Read carefully: "you save 135 kr" is the discount, "now 315 kr" is the price after the discount.

VAT in Sweden

VAT ("moms" in Swedish) is a tax on the price. The price without VAT is the whole, and the VAT is worked out as a share of it.

According to the Swedish Tax Agency (Skatteverket), VAT is 25%, 12% or 6%. The rate on food is 6% from 1 April 2026 up to and including 31 December 2027.

VAT rateChange factorExamples (Skatteverket, 2026)
25%1.25most goods and services
12%1.12restaurants, hotels
6%1.06food, books, buses and trains

Adding and removing VAT

price with VAT = price without VAT · 1.25

To go backwards, we divide by 1.25. Division undoes the multiplication.

price without VAT = price with VAT ÷ 1.25

Do not take 25% off the price with VAT. The VAT is 25 ÷ 125 = 0.2, so 20% of the price with VAT.

Example

Example 1: A jumper with a 30% discount

A jumper costing 450 kr is sold at a 30% discount. We want to know what we pay.

  1. The discount in kronor: 30% is 0.30.

    0.30 · 450 = 135

  2. We subtract the discount from the original price.

    450 − 135 = 315

  3. A shorter way: we pay 100% − 30% = 70% of the price.

    0.70 · 450 = 315

  4. We pay 315 kr.

315 ÷ 450 = 0.7, so 70%. And 135 + 315 = 450. That is correct.

Example 2: Adding 25% VAT

Headphones cost 800 kr without VAT. We want to know the price with 25% VAT.

  1. The VAT is 25% of the price without VAT.

    0.25 · 800 = 200

  2. The customer pays the price without VAT plus the VAT.

    800 + 200 = 1 000

  3. A shorter way: the price with VAT is 125% of the price without VAT.

    800 · 1.25 = 1 000

  4. The price with VAT is 1 000 kr, of which 200 kr is VAT.

200 ÷ 800 = 0.25, so 25% of the price without VAT. But 200 ÷ 1 000 = 0.2: the VAT is 20% of the price with VAT.

Example 3: Removing the VAT from a receipt

A receipt shows 1 500 kr including 25% VAT. We want to know the price without VAT and the VAT.

  1. Price without VAT · 1.25 = 1 500. We want the price without VAT on its own, so we divide both sides by 1.25.

    1 500 ÷ 1.25 = 1 200

  2. The price without VAT is 1 200 kr. The VAT is the difference.

    1 500 − 1 200 = 300

  3. The VAT of 300 kr is 20% of 1 500 kr, not 25%.

    300 ÷ 1 500 = 0.2

1 200 · 1.25 = 1 500. We are back at the amount on the receipt, so it is correct.

Pitfalls

  • Taking 25% off the price with VAT, so that 1 500 kr becomes 1 500 · 0.75 = 1 125 kr.

    The VAT was worked out on the price without VAT. Divide by 1.25: 1 500 ÷ 1.25 = 1 200 kr.

  • Adding the percentage back on to find the original price, so that 360 kr after a 20% discount becomes 360 · 1.2 = 432 kr.

    360 kr is 80% of the original price: 360 ÷ 0.8 = 450 kr. Check: 450 · 0.8 = 360.

  • Adding two discounts together, so that 20% and then an extra 10% becomes 30%.

    The second discount is worked out on the reduced price: 0.8 · 0.9 = 0.72. We pay 72%, so the discount is 28%.

Practise on your own

0 of 4 correct

  1. A pair of trousers costs 600 kr and is sold at a 25% discount. What is the price?

  2. A lamp costs 360 kr without VAT. The VAT is 25%. What does the lamp cost with VAT?

  3. An invoice is for 2 000 kr including 25% VAT. How many kronor is the VAT?

  4. A jacket costs 960 kr after a 20% discount. What was the original price?

More walkthroughs with Fox

Common questions

How much is VAT in Sweden?

According to the Swedish Tax Agency (Skatteverket), the standard VAT rate is 25%. Restaurants and hotels have 12%, books and passenger transport 6%. The rate on food is 6% from 1 April 2026 up to and including 31 December 2027.

Why do you divide by 1.25 instead of taking off 25%?

The VAT is 25% of the price without VAT, so the price with VAT is 125%. We divide by 1.25 to get back to 100%.

How do you work out the percentage discount you got?

Divide the discount in kronor by the original price. From 500 kr to 400 kr: 100 ÷ 500 = 0.2, so 20%.

How do you remove 6% VAT on food?

Divide the price by 1.06. 530 kr with 6% VAT is 530 ÷ 1.06 = 500 kr without VAT, and the VAT is 30 kr.

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Sources: Momssatser och undantag från moms, Livsmedelsmomsen sänks till 6 procent

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