Unlike many cars, the service light reminder for the Volvo S40i doesn't get reset with the OBD-II scanner. You must use the Ignition and Odometer trick to reset the service light.
1. Insert the key and turn the ignition switch to I.
2. Press and hold the Odometer reset button and then turn the ignition switch to II.
3. Wait until the the information (i) light blinks and release the Odometer reset button. Release while the light is still flashing. It might take up to 15 seconds.
4. Turn off the ignition switch and remove the key.