What is F-tax?

F-tax, also known as the F-tax certificate, means that business owners who run a business are responsible for paying their preliminary tax and employer contributions. This applies to both individuals running sole proprietorships and legal entities such as limited companies.

F-tax and its benefits

For many businesses F-tax is a must for conducting business. F-tax allows business owners to manage and pay their taxes and contributions independently. This can increase your credibility with clients and lenders. You become more attractive as a business partner and it can also facilitate the process of applying for loans.

Applying for F-tax

The application for F-tax is made via the e-service on verksamt.se. You can also apply for F-tax using the "Företagsregistrering (SKV 4620)" form on the Swedish Tax Agency's website and submit it by mail. The application requires that you have clear plans for a profit-driven business, have paid your taxes and submitted income declarations. Additionally your business must not be subject to a business prohibition or have been bankrupt.

How long does it take to get F-tax?

It takes approximately 3 to 6 weeks to receive a decision from the Swedish Tax Agency after applying for F-tax. The time may vary in some cases if there is a high workload or if the case is complex.

How much F-tax should be paid?

To determine your F-tax, the Swedish Tax Agency uses your preliminary income information that you provided in your business registration or in a preliminary income declaration. It can be challenging to predict your upcoming income when you start your business. If your actual income differs from your initial estimates, you have the option to submit a new preliminary income declaration. The Swedish Tax Agency will then adjust the original debited preliminary tax to match the final tax as closely as possible.

The difference between F-tax, A-tax and FA-tax

F-tax applies to those running sole proprietorships, limited companies or partnerships. A-tax applies to employees where the employer is responsible for employer contributions and tax deductions. For those who are employed and run a sole proprietorship at the same time, FA-tax is required. This means that the employer deducts taxes and contributions for the employment and the sole trader pays preliminary tax for the sole proprietorship.

Invoicing without F-tax

It is possible to invoice without F-tax, but in many cases the counterparty is not willing to enter into a business deal with someone without F-tax. The reason is that in such cases, the counterparty must be responsible for deducting taxes and employer contributions for the work.

Revoked F-tax and how to regain it

If your F-tax approval is revoked, it may be due to missed tax payments or not following the rules. Having F-tax proves your responsibility towards taxes and contributions. To regain it, correct any errors and reapply with the Swedish Tax Agency.

Our recommendations

We recommend all business owners to have F-tax. F-tax not only gives you financial independence but also creates a solid foundation for your business operations. By taking responsibility for your tax payments and employer contributions, you demonstrate your professionalism to clients and lenders, build trust and credibility for your business, open doors to beneficial partnerships and show that you take control of your finances building a strong foundation for your successful future as an entrepreneur.