Registering for taxes

When you register your own company or buy a business in Sweden, you should apply for registering your business activities in Swedish Tax Agency (Skatteverket in Swedish). There are different principles in paying tax for different activities as well as different tax amount depending on what type of product or service you are offering. 

Specific deadlines are also very important for you as a business owner in Sweden where you need to declare your payed or received amount of tax money and the most important thing to do an annual book keeping and annual income declaration. Deadlines are different for private persons and for different types of registered companies

Overall, taking care of financial aspect of your business in Sweden especially dealing with taxation rules are somehow complicated and at the same time very serious. We highly recommend you to hire a certified part time accountant and/or auditor to avoid possible fines due to declaration mistakes. 

 

Note: If you are going to use our services, we will provide you by sufficient help in registration process plus one year support in managing your accounting Free of Charge!

 

Industry code (SNI):

The Swedish Standard Industrial Classification (SNI) is a Swedish standard for classification of different activities. It is based on the EU recommended standard (NACE). The industry codes describe the categorization of activities that you carry out in your business and includes finances. You should provide one or more 5 digits SNI code when you register your company. It is essential that the industry codes that you provide are correct and related to what you do. Moreover, with the correct industry code, you will receive relevant information to your business sector.

You can search for all industry codes at www.sni2007.scb.se. The industry codes you provide are forwarded to Statistics Sweden’s Business Register, together with the name and address of your business. Statistics Sweden’s Business Register is a public register that includes all Swedish businesses. The register is used as a data source by organisations, authorities and web services. Statistics Sweden also use the register to select samples for statistical surveys.

 

Cash Register:

If you sell goods and services for cash payment or payment by credit card, you must have a certified cash register. Some businesses are exempt from this rule. You report a cash register at the same time as you report your business to the Swedish Tax Agency. More information about cash registers is available on the Swedish Tax Agency website.

 

 

Value Added Tax (VAT):

As consumers, we all pay value-added tax (VAT or moms in Swedish) as a part of the price when we buy goods or services. As a business operator, you pay VAT to the state when you make purchases for your business. The VAT does not constitute an expense in most cases, since you are entitled to make deductions for the VAT with a few exceptions. Most enterprises that sell goods or services in Sweden must charge 25 per cent in VAT on the price before VAT. Some industries have a lower VAT rate, 12 per cent or 6 per cent, and some industries are completely exempt from VAT. The VAT you charge on your sales is called outgoing VAT. The VAT you pay on your purchases is called incoming VAT. If you have more outgoing VAT than incoming VAT, you must pay the difference to the state. If the difference is negative, in other words you have more incoming VAT than outgoing VAT, you are entitled to a refund. You have to declare the VAT paid and received by the enterprise. Depending on the turnover of your enterprise, you should do so once a month, every three months or once a year in a VAT return. You may report VAT once a year if your business operations as a sole trader, your limited company, your trading partnership/ limited partnership or your economic association produce a turnover of no more than one million SEK a year

 

A-tax, F-tax or FA-tax registration?

For people who have an employment, they are required to pay A tax on income. It is the employer who deducts tax on the salary and pays employer fees before the net salary is paid to the employee. Even pensioners usually pay A-tax. The business owner may, at the request of the Tax Agency, be approved for F-tax. An approval for F-tax means that it is the entrepreneur himself who pays the preliminary tax and own taxes to the Swedish Tax Agency. FA tax is a combination of F-tax and A-tax. Individuals who are self-employed, while receiving income from employment, must be approved for both F and A tax. This is called F-tax with terms, but the commonly accepted name is FA tax.

An approval for FA tax means in practice that the entrepreneur has an A-tax certificate used for the employment, and a F-tax statement used for his own company. F-tax means that the self-employed person pays taxes and own taxes on income in the business sector. The employer makes tax deductions and pays employer's fees for the income from the employment as usual. "F" in F-tax stands for companies and "A" in A-tax stands for employee.

 

Closing the accounts:

Once the financial year is over, you have to sum up how the year went, i.e. close your annual accounts. Simply put, this means that you sum up the income and expenses in an income statement as well as assets and liabilities in a balance sheet. The rules on the closing of the accounts differ depending on the form of business enterprise you have and the size of your turnover. You then complete your income tax return using the information in your annual accounts. The Swedish Tax Agency calculates your tax liability for the year and compares it with the preliminary tax you have paid during the year. If you have paid too little tax over the year, you have to pay more; but you will receive a refund if you have paid too much.

 

 

Note: You will have to pay a penalty if you file your return late. If you pay the enterprise’s tax, VAT or employees’ taxes and social security contributions too late, you must also pay the interest expense and are at risk of the debt being transferred to the Swedish Enforcement Authority (Kronofogden) for collection. 

 

 

In some cases, you must also provide statistics to Statistics Sweden (SCB). You are required by law to provide SCB with information regarding your business, if SCB so requires. If this is the case, SCB will contact you with more information. 

 

 


(Extracted from Swedish Tax Agency website. Last updated on 2018-04-18)

Rate this item
(0 votes)