Closing a sole trader business: ending the books right

The Swedish Accounting Standards Board (Bokföringsnämnden, BFN) decided on 29 October 2026 to send out for consultation proposed changes to its general advice on when the bookkeeping obligation ends in a sole trader business (BFNAR 2004:2). The changes are not meant to change anything in substance. If you are closing your sole trader business, it is still a good time to go through what applies, from deregistration to the final year-end accounts.

What does BFN propose?

The general advice dates from 2004 and, according to BFN, needs to match today's Bookkeeping Act. The proposal is part of the Board's review of older rules.

• Duplicate rules are removed. What is now covered by BFN's general advice on bookkeeping and on annual accounts is proposed to be removed, and points 5 and 6 are repealed.
• When the business has ended moves from the explanatory notes into the advice itself, to make it clearer.
• Estates are named explicitly. An estate that runs a business was already covered, but this is now written out.

BFN proposes that the changes apply as soon as they are decided and published. The draft is dated December 2026. The consultation period ends on 23 November 2026.

When to stop bookkeeping

You must keep books until you no longer run a business. Under the proposal, that is when you have actually stopped the activity that made up the business and have no concrete plans to continue.

• If you are selling off the assets, the business counts as ongoing until they are sold or transferred, as long as this happens within a reasonable time.
• Holidays, parental leave or a low season do not mean the business has ended.
• Still being registered or still owning assets does not in itself make you obliged to keep books.

Deregistering the business

With the Swedish Tax Agency (Skatteverket) you withdraw your F-tax approval and deregister for VAT and as an employer. You do this in the e-service on verksamt.se or on the change notification form (SKV 4639).

• The date is the date the Tax Agency decides on the deregistration, unless you ask for a later one. If F-tax and VAT are to end on different days, state this in the notification.
• Your assessed preliminary tax needs to be changed with a new preliminary income tax return.
• Cash registers and representatives must also be deregistered, if you have any.

If the business is registered with the Swedish Companies Registration Office (Bolagsverket), you report the deregistration there too, also on verksamt.se. It costs nothing. You cannot choose the date: the business is deregistered when the notification arrives. Sell the assets, close accounts, cancel contracts and pay the debts before you report it.

The final VAT and payroll returns

• VAT: file returns for all periods up to and including the deregistration date. VAT on customer receivables and supplier debts goes in the final return, whether you use the cash or the invoicing method. If you have no VAT to report, enter zero.
• Trade within the EU: submit EC sales lists for all periods up to the deregistration.
• Employer: report employer contributions and tax deducted for all periods up to the deregistration. If you paid no salary, enter zero.

Record the final withdrawal

The last transaction is usually that you take over the assets and debts left in the business into your private finances. This is recorded as a withdrawal against equity, and the voucher must show which assets and debts you took out and at what value.

• Assets are recorded as a sale at market value, but against equity instead of cash or bank.
• VAT on the withdrawal is only due if you deducted the VAT when you bought the asset. The basis is the lower of the purchase price and the market value.
• If you sell the whole business to a buyer who can deduct the VAT, no VAT is charged.
• Cash funds that are transferred must be recorded by the next day.

The final financial year and accounts

Ongoing bookkeeping is closed with simplified annual accounts, annual accounts or an annual report, no matter when in the year you close down. The last day of the financial year is the last day you run the business. If it cannot be determined, the financial year ends on 31 December.

In the final accounts, the balance sheet shows that no assets or debts remain in the business. For the last year you submit an NE schedule with your income tax return as usual.

The accounting records must be kept until the end of the seventh year after the calendar year in which the final financial year ended.

A deficit when the business ends

If the business has a deficit when it ends, you can deduct 70 percent of the final deficit in your tax return the year after. The deduction can be spread over that year and the two following years. This does not apply if you started a new business in the same year you closed the old one.

Closing-down checklist

1. Sell or take over the assets, pay the debts and cancel contracts and accounts.
2. Record the final withdrawal against equity with a voucher.
3. Deregister F-tax, VAT and employer status with the Tax Agency.
4. Deregister the business with Bolagsverket if it is registered there.
5. Submit the final VAT and employer returns, even if they show zero.
6. Prepare the final accounts and submit the NE schedule for the last year.
7. Keep the accounting records for seven years after the final financial year.

Want help?

We prepare the final year-end accounts and tax return for you. For a sole trader it costs from 2 500 SEK excl. VAT. Continuing the business as a limited company? Read about limited company or sole trader and how to start a limited company. See all prices or request a quote below.

Sources

• Bokföringsnämnden: Consultation on changes to the end of the bookkeeping obligation for sole traders (2 November 2026)
• Bokföringsnämnden: Consultation letter, ref. 2026:132
• Bokföringsnämnden: Proposed changes to BFNAR 2004:2 with statement (consultation version)
• Skatteverket: Closing a sole trader business
• Skatteverket: Reporting deregistration
• Skatteverket: VAT and bookkeeping when the business ends
• Skatteverket: Deficit when a business ends
• Bolagsverket: Closing a sole trader business
• verksamt.se: Fees