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Ending and deregistering a sole trader

Ending and deregistering a sole trader

When you end a sole trader, you must consider, among other things, how to account for the business's equipment and own withdrawals for tax purposes. You also must ensure that equipment is managed in the best possible way from an environmental perspective.

At the Swedish Tax Agency, you can read more about what you need to do when you want to end your sole trader. Please tick what applies to your business. 

Closing sole traders at the Tax Agency (in Swedish)

 

Equipment and movable property 

When you are getting rid of equipment it's best to sell it - from both a sustainability and financial point of view. You can also donate to charity. Some charities also offer pick-up for larger loads. 

Equipment and movable property that cannot be sold should be recycled as much as possible. Hazardous waste must be handled properly. More information is at Naturvårdsverket.

Hazardous waste at The Swedish Environmental Protection Agency (in Swedish)

Taxable own withdrawals 

If you still have assets and debts when your business ceases, you must record them against the business's own capital account. This entails you personally taking over the assets or liabilities and it is therefore the last business transactions of your company before the financial statement. 

If you take over your business assets privately instead of selling them, this is called an own withdrawal. Your own withdrawals are taxable and this affects your income tax return and your VAT return. Examples of taxable own withdrawals are equipment and stocks. 

For withdrawal taxation, you must include the asset’s market value as income of economic activity. The market value is what you could be paid for the asset if you were to sell it to someone else. You must also tax depreciated equipment. 

If you are VAT registered, you must declare output VAT for withdrawal taxation. VAT on own withdrawals is calculated based on the purchase price or the market value excluding VAT, whichever is lowest. If the purchase price is missing, you can use the cost price instead. The cost price consists of all the costs you have had to produce the goods. 

Paying the right preliminary tax 

The preliminary tax that you pay today will probably no longer be correct when you end your business. This is because your business result is affected by the sale of stocks, own withdrawals and funds to be reversed for taxation. To pay the correct preliminary tax, you should therefore submit a new preliminary income tax return. 

If you do not file a new preliminary income tax return, you will continue to pay the same preliminary tax as before. Otherwise, you run the risk of a tax debt being handed over for collection. 

Change your debited preliminary tax at The Swedish Tax Agency (in Swedish)

Revoke F-tax and deregister as an employer and from VAT

When you close your company, you must deregister it in various places, for example, cancel the company's F-tax and deregister it as an employer. The easiest way to do this is via the services here at verksamt.se.

F-tax, VAT, employer and SNI

Revoke F-tax   

When you no longer sell goods or services, you must request that your authorisation for F-tax be revoked.  

End employer registration

When you no longer have any employees, you must deregister as an employer.

You must report employer's contributions and tax deducted for all accounting periods up to and including the date of deregistration in the employer's declaration.

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').

Terminate VAT registration when your activity ceases

When your VAT-taxable activity ceases, you must deregister the company from VAT. You account for VAT for all accounting periods up to and including the date of deregistration in the VAT return.

If you use the balance sheet method, then accounting for VAT on claims and liabilities must be made in the final VAT return. 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.

Deregister via form

If you are unable to use the e-services, you can use paper forms to deregister yoursole trader from F-tax, VAT, or as an employer, and change information.

End a sole trader via a form from the Swedish Tax Agency

Deregister supervisory unit and cash register 

When you deregister your business, you must also reactivate your cash register. You can do this in the e-service Cash Register on the Swedish Tax Agency's website.  

Cash register e-service at the Swedish Tax Agency (in Swedish)

Remove special tax address and visiting address 

If you have registered a special tax address or visiting address with the Swedish Tax Agency, you must request that the Tax Agency remove these addresses when your activity ceases, so that your mail can reach you.  

Change address and other information

Deregistration at the Swedish Companies Registration Office

If you are registered as a sole trader with the Swedish Companies Registration Office and you want to end your activities, you must report this while logged in to the e-service. Notification of deregistration to the Companies Registration Office does not cost anything. Please note that this service is only available in Swedish. You need a Swedish BankID in order to log in to the service.

Deregister via form

If you are unable to use the e-services, there is a form available (in English) at the Swedish Companies Registration Office.

The form Deregistration, sole trader business, trading partnership and limited partnership at the Swedish Companies Registration Office

Protect your company name for continued use  

The right to your company name expires if you do not protect it in some way. For example, you may have another company that wishes to continue using the name. Then you should report it as a secondary company name. You do this at the Swedish Companies Registration Office. Some company names can also be protected as trademarks.  

Deregistering 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 you no longer want the authorisation to apply, you should notify the Swedish Tax Agency that the person is to be deregistered.  

Deregistering representatives via the e-service at the Swedish Tax Agency (in Swedish)

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

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