A-Z
Below are explanations of the words used on verksamt.se.
A
Tax that is paid on income from an employment.
Anyone who has employment or a pension almost always pays “A” tax. If you are an employer or pay pensions you must make deductions for preliminary tax from the salary/pension according to the preliminary tax tables.
Certificate to an employer showing which tax table is to be used for deducting preliminary tax.
Assessed ability of being able to work (full-time or part-time) depending on medical circumstances.
Summary of a certain type of business transaction, e.g. deposits and withdrawals from plusgiro, rent or telephone costs. All the company’s transactions must be placed in the account where they belong.
To enter the amount of a business transaction in the correct account.
Outstanding invoices a seller has or the money the seller is owed from its clients.
Summary of the accounts a company uses in its accounting.
Ongoing accounting that involves recording all of a company’s business transactions as they occur.
Document that is created to replace a lost verification.
Period that a company’s financial reporting covers.
All the printed and electronic documents that are part of a company’s accounting and financial reporting.
Examples include verifications, receipts and annual reports.
Formal recognition that a company has sufficient competence to perform a certain task.
Accreditation is proof that relevant quality requirements have been complied with. SWEDAC is Sweden’s central accreditation body.
Interest expenses or income that you have not yet paid or received.
The expense you have in acquiring an asset.
The acquisition expense (or extra cost amount) is usually the purchase price with an addition for commission etc. In the case of an inheritance or gift you take over the previous owner’s acquisition expense.
Temporary import of a product into the EU for processing or repair. The product is then exported as a refined product.
Financial compensation to a job seeker during the period they participate in certain labour market programmes decided by the Employment Office Service.
The social insurance agency Försäkringskassan calculates and pays activity support.
Support that involves workplaces, working tasks or the work environment being adapted to compensate for a disabled person’s reduced ability to work. Adaptation may consist of working aids or special devices.
Find out more about working aids at the social insurance agency Försäkringskassan (in Swedish)
Find out more about working aids at the Employment Office Service
Extra cost amount for a partnership of limited partnership. Is affected by, that is increases or decreases, by the company’s financial results and other contributions.
Annual advice of calculation of final tax.
This also shows tax still to be paid or tax that will be paid back. Business owners and companies normally receive the advice of final tax settlement in December, while paid employees may receive it in June, August or September.
The right of a company to buy or sell goods and services on behalf of another company. An agency is usually limited to a specific country.
Verbal or written agreement that involves rights and obligations for the parties involved. Regardless of the form, an agreement is normally binding on both parties.
The way in which a limited company disposes of the profit for the year and any remaining profit from previous years.
Repayment of a loan debt. This is usually done as regular payments, for example once a month.
The general meeting of a limited company that must be held within six months of the end of each financial year.
Documentation of a company’s accounts, which consists of income statement, balance sheet, notes, directors’ report and possibly a financing analysis.
Some companies, such as limited companies, must conclude their accounting with an annual report.
Loan where the total of interest and amortisation is always the same with every repayment. The borrower thus has a fixed monthly expense.
Extra customs charges that under certain circumstances are applied to the import of goods that are dumped, i.e. goods that have a lower price for export than on the home market.
Request for retrial (in a higher body).
Auditor who has an academic education (exam in economics), has three years’ qualified practice and passed the auditing exam from the Supervisory Board of Public Accountants.
Document containing the company name, nature of the business and other basic provisions for a limited company.
Basic decision on annual taxation, appeal decision or decision on taxation measures according to a court verdict. The Tax Agency advises decisions on taxation.
Resources that have a direct or indirect financial value to the company.
International customs document that you can use for the temporary import and export of professional equipment, product samples and goods for exhibition etc.
If you have an ATA carnet, you use this as declaration document instead of the single administrative document.
Certify that information is probable.
Investigation of the financial reporting and management of a company which is performed subsequently by an independent person, usually an auditor.
Person whose task is to investigate a company’s annual report and accounts and the board’s administration of the company.
The auditor may be authorised or approved by the Supervisory Board of Public Accountants.
Certificate from an auditor, for example when share capital has been paid with capital contributed in kind.
When share capital is paid with capital contributed in kind the auditor should confirm that all the property has been transferred to the company and that it has been listed at its actual value.
An auditor’s report of the conditions in a company.
In the auditor’s report, the auditor notes what has been observed in the investigation of the company’s annual report and accounts and in the board’s administration of the company.
Documents that confirm information.
1. Permit, authorisation or other identification to exercise a certain trade or profession, certain defined duties within the trade or profession or run a certain type of business activity.
Authorisation is normally given by a government authority after testing the applicant’s competence and suitability.
2. The right for a person to represent another person or company. In principle it could cover anything, but there is no obligation for another party to accept an authorisation.
Auditor who has passed a master’s exam in economics, has five years’ qualified practice and passed the higher auditing exam from the Supervisory Board of Public Accountants.
Person or persons with the right to sign in the company’s name with legally binding effect. An authorised signatory can sign an agreement, for example.
B
Reporting of assets, debts and equity on a certain occasion, normally the last day of the financial year.
The total of the asset or debt side of the balance sheet.
Certificate that shows that share capital is paid.
The bank certificate may be issued by a bank, a credit market company or a foreign credit institution within the EEA.
The banks’ common system for transferring payments between accounts.
Legal process in which a person’s or a company’s business must stop and the assets are sold to pay creditors.
An amount that is based on price development in society and that is determined by the government every year.
The base price amount is used as a basis for various calculations, including compensation from the social insurance agency Försäkringskassan and the basic allowance in tax assessment.
Find out more on the Swedish Tax Agency’s website (in Swedish)
Interest rate that is determined by the Tax Agency that forms the basis for interest rates on tax accounts.
Standardised account schedule for accounting.
The basic account schedule can be used as a whole or a selection of appropriate accounts can be used.
Allowance that reduces your taxable income without your having to apply for it.
The allowance is given to private individuals who are residents in Sweden. The size of the basic allowance is linked to the base price amount and the size of the assessed income.
Amount on which VAT is calculated.
The amount is normally the price excluding VAT. All price supplements except interest are included in the amount.
Examples of supplements include customs duty, point taxes, shipping costs, repayment and finance costs.
Written decision on product code for your product.
Swedish Customs issues the decision, which is normally valid for six years and binding throughout the EU.
Group of elected persons in limited companies and associations, for example, who take important decisions.
Ordinary member of a board.
A way of storing non-community goods within the EU without needing to have customs clearance. As long as the goods are in a bonded warehouse you don’t need to pay customs and VAT on them.
Method of calculating the distribution of dividend from a cooperative society. The distribution is based on how much a member has bought from the society.
The value that a company’s assets and debts have in the balance sheet.
1. A company’s subordinate department that is located in a different place from the head office (general meaning).
2. A foreign company’s office in Sweden with independent administration (registered with the Swedish Companies Registration Office).
Time-limited sole right of use. The distinctive feature that a company uses to distinguish its goods and services from those of others. A brand can be a word or some other graphic symbol that characterises a product or service.
Plan of estimated income and expenses over a certain period.
The first period of a business activity, when high costs mean losses or small profits.
Commercial activity that is run over an extended period, independently and for the purpose of making a profit.
A brief description of what the company intends to earn money from and how this is to be done. The business concept can also be seen as how the company satisfies market needs.
Strategic plan for how the business concept is developed in the longer term, which also contains various types of budgets.
An event that means that the company’s assets, debts, income or expenses have changed.
C
1 January – 31 December.
The base that´s calculated from the company’s assets and liabilities. The capital base is used to decide provisions to expansion funds and for rate distribution.
Assets other than money that are used as payment for shares in a non-cash issue. Capital contributed in kind may for example be a vehicle or a property.
Gains that occur on the sale of property, residential rights or securities etc.
Income on assets.
Examples of capital gains include interest income, dividend on shares and realisation gains on the sale of shares, property and residential rights.
Loss that occurs on the sale of property, residential rights or securities etc.
An increase in share capital where assets are moved from some other part of a limited company, such as from the statutory reserve.
A capitalisation issue does not mean that the shareholders make a contribution.
Financial support that you can receive from the social insurance agency Försäkringskassan if you lose income when your child is ill and you must be at home to care for it.
Temporary parent’s allowance is sometimes known as the everyday allowance for care of a sick child.
Find out more about temporary parent’s allowance at Försäkringskassan
Discount given when a customer pays before the due date.
Method that means that you only enter cash receipts and payments on an ongoing basis during the tax year. (Except at year end when all other business transactions necessary to determine the financial results and position must be entered.)
That a buyer must pay the shipper directly before the item is handed over. Thus cash on delivery means that payment is made before the item is received.
A mark that certifies that a manufacturer or importer meets the safety requirements set by the EU for the product group in question.
For many products, the manufacturer or importer itself is responsible for ensuring that the product meets the requirements. The exception is certain products with specific safety requirements.
Proof that a person or the estate of a deceased person is no longer bankrupt.
Certificates of discharge from bankruptcy are issued by the Swedish Companies Registration Office.
Find out more about discharge from bankruptcy at the Swedish Companies Registration Office
Certification that a company’s process, product or service complies with certain requirements. Certification is done by an independent company or organisation.
Certificate that accompanies the annual report in which a board member or the managing director certifies that the income statement and balance sheet have been adopted by the annual general meeting.
The certificate should also include the general meeting’s decision on disposition of profit or loss.
A charge on a company’s moveable property that is used as security on a loan, for example. Examples of assets that can be used as security include machines and goods in stock.
Demand for payment. When someone is liable to pay you, you have a claim against that person. When you are liable to pay someone, that person has a claim against you.
Someone who has a claim for payment. Also known as a claimant.
Determine the right product code for a product from the rules in the customs tariff.
Terms in an agreement.
A limited company in which a maximum of four persons own shares corresponding to over half the voting rights in the company.
This is the main rule. There are other special rules. Closely related parties (spouse, child etc.) count as one person.
Find out more about close companies at the Swedish Tax Agency (in Swedish)
Agreement between an employer and a trade union about what terms shall apply to pay and conditions of employment.
An individual company can be a party, but not an individual employee, who must be represented by a trade union.
One who has agreed to buy or sell goods or services independently on behalf of another company.
A commercial agent can for example accept tenders and sign agreements on behalf of another company, if the agreement is so written.
Assignment to trade in, for example, securities on behalf of a customer but in your own name.
Goods that originate in the EU or have customs clearance in the EU.
Procedure decided on by a court that means that a company with payment problems is given an opportunity to resolve its problems.
Company reconstructions are offered to companies that are judged to be profitable in the long term. The procedure may for example involve coming to a financial agreement with lenders.
Board of directors that satisfies the conditions that are required by law and company articles of association.
The number of board members in a limited company must be within the limits stated in the articles of association. The annual general meeting then decides exactly how many board members and deputies there will be during a mandate period.
Settlement of a dispute between parties. Conciliation may occur inside or outside a court.
Document issued by a seller so that a buyer can check that the order has been received and understood correctly.
Provision in the articles of association which means that a shareholder must have the approval of the board or general meeting before being able to transfer his or her shares.
Document that accompanies a delivered product that contains information about the product type and quantity.
Goods and materials that are used and consumed within the company. Examples include office sundries, cleaning products and other items that are not used in production.
Inventory with financial lifetime of less than three years or inventory of limited value.
Assignment to perform extensive or more long term work. Often in the building and construction industry.
Company that undertakes to perform a contract. Often a person who starts new businesses or develops new products.
Information about income.
The employer must report which taxable remunerations that have been paid to employees during the income year.
Banks and credit institutions must report interest or dividend paid.
Independent gathering of persons who voluntarily cooperate to meet their common financial, social and cultural needs and wishes through a co-owned and democratically run company or enterprise.
Guidelines for how a cooperative can realise the cooperative values into action.
Society that has financial activities that the members participate in and benefit from. The members do not have personal liability for the society’s debts. A cooperative society is a type of enterprise.
Based on self-help, personal responsibility, democracy, equality, fairness and solidarity. Ethical values such as honesty, openness, social responsibility and care for others are important.
Time-limited sole right for a person who has created a literary (book, newspaper article, advertising copy etc.) or artistic (artwork, film, photograph etc.) work to decide how the work is to be used.
Identification number given to a juridical person, such as a company or association.
Expense that is distributed over a certain period, such as one or more years, in the accounts.
1. The right to borrow a certain sum of money belonging to someone else, a creditor.
2. Period of grace for payment for purchase of a product or service.
3. The right hand side of a accounting account.
Information from a credit rating company about a private individual’s or a company’s income and liabilities, as well as any records of non-payment.
Assessment of a company’s or a private individual’s ability to pay.
Someone who has a claim for payment. Also known as a claimant.
Assets that are intended for sale and that are not non-current assets.
Current assets are divided into four groups:
- goods in stock
- receivables
- current investments
- cash and bank deposits.
States how much you must pay in customs duty. The rate is often a certain percentage of the customs value.
List in systematic form of the goods that occur in international trade. Product codes and customs rates appear in the tariff.
The sum that you normally calculate customs duty on.
Put simply, the customs value is the invoice value including cost of freight and insurance to the EU border. The customs value is also the basis for calculation of VAT (customs value + customs duty = basis for VAT).
Identification number that every import and export shipment receives when it is registered in the customs data system.
D
The company’s business transactions presented in order of verification number. Sometimes called a verification list.
Entering business transactions in order of registration so that it is possible to see the order in which business transactions have been registered. This means that the company’s business transactions can be presented in order of verification number.
In an accounting programme, day book and general ledger entries are normally made at the same time.
A company that buys products and sells them on. Dealer is another term for wholesaler and retailer.
1. Charge somebody an expense for something.
2. Write an amount on the left hand side of the accounting accounts, the debit side.
A company’s debts are, for example, bank loans or other loans, unpaid invoices from suppliers and costs that arise in the activities but that no invoice has yet been received for.
The decision and action of the enforcement service, on behalf of the government and municipalities, to ensure that payments due to government or local authorities are collected.
Exhortation to a debtor to pay a debt.
Private company that receives payment for collecting debts on behalf of companies and individuals.
Cost relating to debt collection, such as reminder letters.
Person who owes a debt to another (to a creditor).
Report of goods that are taken out of the EU customs area or EU VAT area. The export declaration is given to Swedish Customs.
Terms that describe whether the buyer or seller bears the cost of transportation of items and how the risk is distributed.
If nothing else is agreed the rules of the Purchases Act apply to trade within Sweden.
Distribution in the accounts of the expenses of purchased equipment over several years. Examples of such equipment are machines, computers and vehicles.
Person who can replace the managing director of a company when needed.
Advertising addressed directly to the recipient. This is usually advertising that comes to the mail box; other examples are e-mail and SMS text.
Sales method whereby the seller contacts the potential customer and proposes a transaction. Common examples are telephone selling or meeting at the customer´s home.
The part of the annual report in which the board describes the most important events in the financial year and the company’s development.
Sale or in some other way giving up property, such as in a gift.
Where a company name is designed to be distinguishable from other companies, associations and brands and it is perceived as the name of a specific company.
When the enforcement service seizes a debtor’s property so that a creditor can be paid what is owed.
Issuing or disseminating something. Examples are goods or advertising.
Part of a limited company’s profit that is distributed to shareholders.
The municipality where the annual general meeting is held. If anyone needs to sign for the company before a court of law it is important to know which court to approach.
Accounting of every transaction in at least two accounts, with equal amounts in debit and credit.
Find out more about accounts and account schedules (in Swedish)
Income that is taxed twice. For example when a limited company’s profit is taxed both at the company and at the shareholders.
The date on which a debt is to be paid.
E
When a company fulfils its obligations to a customer, by performing work for example, earnings arise.
The earnings can be counted per year, per month or in some other period. The earnings are collected on a regular bases.
Summary of the value of goods or services for VAT-free sale to other EU countries over a certain period.
Identification in electronic form, where electronic communication is used for identification, signature or both.
European Economic Area. The EEA is made up of the 27 EU member countries plus Iceland, Liechtenstein and Norway. For United Kingdom which has left the EU the same rules will apply as they were still members of the EU during the transition period until 31 December 2020.
The total cost of a loan (interest, set-up costs and notification charges). The effective interest is expressed as a percentage and shows how much a loan actually costs.
When someone is being forced to move from their home, office or premises, because of unpaid rent or a disturbing way of life, for example.
Declaration used to report employer’s contributions and tax deducted.
Action taken by the enforcement service to protect someone’s rights.
Examples of assistance include eviction or returning an item that was bought with repayment instalments if the purchaser did not keep up the payments. This requires a decision that the seller, landlord etc. has the right to claim this.
Bringing goods into Sweden from another country.
A charge that a company must pay if it ignores a regulation pursuant to the Environmental Code or if it starts an operation that requires a permit or reporting without having obtained a permit or made a report.
Find out more about environmental sanction charges on the Riksdagen’s website (in Swedish)
Equity corresponds to a company’s assets minus debts. It initially consists of the capital that you as an owner have invested in the company start-up.
From the company’s point of view, equity is a debt to the owners. If the debts are greater than the assets, the equity is negative. The company then has a claim on the owners.
A company’s long-term ability to pay.
Staffed office or other premises from which it is possible to deliver or provide goods and services within the country.
The expression is used in a VAT context for a registered branch or a physical person who is a sole trader with an address in Sweden.
The EU is a customs union. EU member countries have a common customs border with other countries. Trade between EU countries is counted as domestic trade.
Goods imported from or exported to the EU customs area must be declared for customs.
The EU is a customs union and a VAT area. Trade between EU member countries is counted as domestic trade.
Some EU members are not part of the VAT area. Goods imported from or exported to these areas must be declared for customs.
When someone is forced to move from their home, office or workshop premises, because of for example unpaid rent or a disturbing way of life. Also called ejection.
Application to the enforcement service for help in forcibly implementing what has been decided in a court.
An auction in which the enforcement service holds an enforced sale of seized property. Seized property is property that the enforcement service has decided shall be used to pay a person’s or a company’s debts.
Agreement condition that in certain cases makes it possible for a seller to be released from responsibility for actual faults in what is sold.