Taxes and contributions

The Swedish Tax Agency is responsible for administration of taxes in Sweden. When you start your own business, you apply to the Swedish Tax Agency for an F-tax certificate. The F-tax certificate represents proof to your clients that they are not responsible for deducting tax or paying employer contributions.

Tax account

All physical and legal persons paying taxes and contributions have their own tax account at the Swedish Tax Agency. All your payments to the Swedish Tax Agency are recorded in your tax account.

VAT, employer contributions and tax deductions are also recorded in the tax return. F tax and special A tax are not recorded in the tax return, but are paid with other taxes and contributions each month.

Sole traders

If you operate as a sole trader, preliminary estimated income tax and personal contributions are included in the F tax you pay into your tax account each month. Estimated VAT is also included if you provide VAT returns on an annual basis.

Trading partnerships

In a partnership, the partners pay tax on their individual shares of the company's profits. The partners pay preliminary tax each month into their tax account. This means the partnership does not pay income tax, but can still hold an F-tax certificate. The partnership pays property tax, payroll tax and dividend tax on pension costs for employees.

Limited companies and economic associations

Limited companies and economic associations hold F-tax certificates. The company/ association is charged preliminary tax which it pays monthly.

Take care of your F-tax certificate

If you hold an F-tax certificate, this is proof that you are responsible for your own taxes. When clients engage you, they know they will not be liable for your taxes and contributions.

If you do not declare or pay your taxes, your F-tax certificate may be withdrawn. This could lead to problems in obtaining new assignments. Many companies only engage the services of clients holding an F-tax certificate. Lenders may check F tax in connection with loan applications as this shows you have responsibly managed your own tax payments.

Make it clear that you have F tax

Make it clear that you have an F-tax certificate so that clients know you are a responsible business-owner who takes care of your own tax and contribution payments.

• Indicate that you have an F-tax certificate in offers and agreements.
•  Write "F-tax certificate holder" on your invoices.
• You can also show your F-tax certificate.
• If you have FA-tax status, you must indicate in writing that you have an F-tax certificate; otherwise the A-tax certificate is applicable.

The name, address and personal identity number/corporate identification number must appear on documents in order for an F-tax assignment to apply. A client may also contact the Swedish Tax Agency to ascertain what type of tax certificate you hold.

The invoice model

As the business-owner, you should make the appropriate deduction from the invoice to ensure the customer obtains the rebate directly. Only deduct the amount from the cost of labour, not materials and similar costs. After the customer has paid, you request the remaining amount from the Swedish Tax Agency.