Below you will find an exert from the Swedish tax authority containing a brief description of tax rebate for household work called ROT and RUT rebate. For direct access to this information (and more) you can simply click on their logo below.

 

ROT and RUT work

A person who hires you to do ROT (Repairs, Conversion, Extension) or RUT (Cleaning, Maintenance and Laundry) work may get a tax reduction – a ROT or RUT deduction for the labour cost. Material costs and travel expenses arising in connection with the work do not confer entitlement to ROT and RUT tax deductions. We use domestic services as a collective term for ROT and RUT work.

 

To be entitled to ROT and RUT tax deductions, the client must have

  • been liable for tax unrestrictedly during the tax year (income year for tax purposes)
  • reached the age of 18, as a minimum, by the end of the tax year, and
  • expenses incurred for ROT and RUT work.

 

For a client (purchaser of services) to have the right to ROT tax deduction, there is also a requirement that he or she owns the housing unit (småhus), share in housing association apartment (bostadsrätt) or freehold apartment (ägarlägenhet) where the work is carried out.

 

What is ROT work?

Repair and maintenance as well as conversions and extensions are counted as ROT work and are therefore tax deductible, provided that such work is carried out in close connection with a dwelling that the client owns and in which he or she lives. The dwelling may also be a second home (weekend home) or indeed a dwelling that the client owns but that his or her parents happen to live in.

 

On the other hand, the client does not get a tax deduction for building a wholly new house or for the conversion and extension of a new house. A newly built house, in this case, refers to a single or two-family housing unit (småhus) exempt from municipal property tax, i.e. exempt from municipal property tax during the first five years.

 

What is RUT work?

The work carried out, in respect of which the client applies for a RUT tax deduction, must relate to the core domestic work area, and be carried out in a dwelling that he or she lives in or uses as a second home (weekend home), or that the client’s parents live in or use as a second home (weekend home). Domestic services such as cleaning, maintenance and laundry confer the right to a RUT tax deduction. Moreover, childminding (child care), care services and simpler garden work can give the right to RUT deductions. As the person selling your services, you should know which types of work do not confer the right to RUT tax deductions.

 

Size of ROT and RUT deductions

Tax relief for ROT and RUT work amounting to a maximum of half the labour cost is allowed. It is up to you as the service provider to apply for the client’s preliminary ROT and RUT tax deduction and request a payout from the Swedish Tax Agency (Skatteverket) for that amount. The client pays the remaining amount to you by way of the bill that you invoice him or her for.

 

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