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Taxes and fees when selling a sole trader

Dealing with tax and tax returns when selling your business.

The sale is taxed 

You must enter the sale price as revenue in your company's accountings. 

Equipment 

You may deduct the part of the purchase price of equipment for which you have not previously claimed a depreciation deduction. The same applies if you have paid compensation yourself for, for example goodwill or the company name. 

If you retain equipment privately, you should report it for withdrawal taxation. This means that you include the value of the equipment as income in your economic activity. The value you must report is the amount you would be paid if you were to sell the equipment to a third party. 

Commercial property 

When you sell a commercial property, you must include the profit for taxation in the capital tax schedule. 

VAT 

You should not take out VAT if you sell all or a limited part of the business to someone who continues to run the business and who has a right to deduct input VAT. 

It can often be difficult to determine what is meant by a whole activity or a limited part of an activity. This applies, for example, if you keep equipment or part of the stocks. Therefore, you can include a VAT clause in the contract giving you the right to add VAT to the price quoted if it turns out that the sale is not covered by the rules on VAT-free transfer of activity. 

If you are voluntarily liable to pay tax on the letting of premises, the buyer usually takes over your rights and obligations associated with the voluntary tax liability. 

Paying the right preliminary tax 

The preliminary tax that you pay today will probably no longer be correct when you sell your business. This is because your business result is affected by the sale and funds to be returned to 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 to the Enforcement Authority for collection. 

Closing sole traders at the Tax Agency (in Swedish)