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Deregistering a sole trader in the event of bankruptcy

When a sole trader is declared bankrupt, the Tax Agency carries out all the necessary deregistrations. Read more here about what happens in bankruptcy.

This is what the Tax Agency does after receiving information from the District Court:

  • revokes your approval for F-tax
  • deregisters from VAT
  • deregisters as an employer.

If the receiver decides to continue to operate the activity, it is the bankruptcy estate that becomes liable for tax. The bankruptcy estate also becomes an employer and receives a special company registration number.

Swedish Tax Agency revokes your approval for F-tax

If you are in bankruptcy, you may not carry on any activity involving the obligation to keep accounts and therefore the Tax Agency revokes your F-tax approval. There is one exception to the rule that you may not carry on an activity when you are bankrupt, namely the operation of an agricultural business.

Your preliminary tax is called special A-tax (SA-tax) after the Tax Agency has revoked your approval for F-tax.

Your preliminary tax is not reduced just because you have been declared bankrupt. If you do not file a new preliminary income tax return, you will continue to pay the same preliminary tax as before.

Debited preliminary tax and preliminary income declaration at the Tax Agency (in Swedish)

Accounting for employer contributions

The business's activities cease because of the bankruptcy decision. Therefore, you cannot be registered as an employer for the period after the bankruptcy decision.

You must declare employer's contributions and tax deducted for all accounting periods up to the date of the bankruptcy decision.

If you have not paid any wages, indicate this by entering zero (0) in the box "Summa arbetsgivaravgifter” ('Total employer's contributions') and zero (0) in the box "summa avdragen skatt” ('Total tax deducted').

Accounting for VAT until the bankruptcy decision

The business's activities cease because of the bankruptcy decision. Therefore, you cannot be registered for VAT for the period after the bankruptcy decision.
You must declare VAT for all accounting periods up to the date of the bankruptcy decision. If you have no VAT to declare, enter zero (0) in the "Moms att betala eller få tillbaka” ("VAT to pay or be recovered”) box.

Special tax address removed

If you have a special tax address, the Tax Agency will remove it in connection with the bankruptcy.

E-services and representatives

Have you notified someone who is authorised to look at or provide information on your behalf via the Tax Agency's e-services? If so, the Tax Agency will deregister this representative in connection with the bankruptcy. 

Remember that you may need to notify other public authorities that you are closing your activities if you have previously registered your activities with them.