The Volkswagen driver entered the final day with a slender advantage over team-mate Andreas Mikkelsen, but as good as sealed his third career win on Swedish soil when the Norwegian clipped a snow bank and lost more than 20 seconds.
The cancellation of the event's 19th stage also helped Latvala's cause and he eventually cruised home to take just his second victory for Volkswagen by 53.6 seconds.
Mikkelsen finished second to secure his maiden WRC podium with Mads Ostberg third in the first of the Citroens.
Mikko Hirvonen was a distant fourth ahead of Estonia's Otto Tanak.
Reigning world champion Sebastien Ogier recovered from his costly crash on Friday to finish an eventual sixth, getting the better of Henning Solberg.
Pontus Tidemand, Ireland's Craig Breen and Britain's Kris Meeke rounded out the points scoring positions, with Meeke losing several positions with a spin into a ditch on Saturday morning.
Robert Kubica endured a torrid event, with a spin on the final stage dropping him to an eventual 24th.