What is a ROT/RUT deduction?
ROT work relates to repairs and maintenance, and remodelling and additions, provided that the work is performed in or in the immediate vicinity of a residence the individual who is entitled to the deduction owns. However the ROT deduction can not be taken for entirely new buildings, nor for additions to new residences (within the first five years).
There are examples of ROT on the Tax Agency’s website:
https://www.skatteverket.se/rotrutarbete/exempelparotarbete
RUT work refers to household work carried out in the property that the buyer of the service or his/her parents are living in or are staying in. Beginning in 1 January 2016, the RUT deduction is approved only for simple cleaning work, other cleaning work or for the final cleaning when moving. The RUT deduction can not be used for cooking or other food preparation.
Via this link you can see examples of RUT work:
https://www.skatteverket.se/rotrutarbete/exempelparutarbete
Who may use this deduction?
A buyer who has been taxable without limitations during the tax year and is at least 18 years old (by the end of the year) is entitled to receive a maximum of SEK 50,000 in ROT/RUT deductions per person, per year. As of 1 January 2016, the ROT deduction is 30% of the labour costs, with a maximum deduction of SEK 50,000 regardless of the buyer’s age. The RUT deduction is a maximum of SEK 25,000 for people under the age of 65. Those who have reached age 65 on 1 January 2016 can receive up to SEK 50,000 in the RUT deduction.
The buyer has the responsibility for ensuring that they have an amount available to them for the ROT/RUT work in question.
The amount available is based on the buyer’s final income tax where other possible deductions are taken into account before any ROT/RUT deductions. If you are not sure that the buyer has enough room for your work, you can ask the buyer for a certificate from the Swedish Tax Agency. This will show how much of the possible deductions have been utilised so far in the current year. If you are not sure that the buyer has enough room for your work, you can ask the buyer for a certificate from the Swedish Tax Agency. This will show how much of the possible deductions have been utilised so far in the current year.
For the buyer who pays for a RUT or ROT job on 1 January 2016 or later, the rules that were introduced on 1 January 2016 will be applicable for any ROT and RUT deductions. This applies regardless of whether the work was performed in 2015 and not finally completed until January 2016.
Please note that providers of the service may not be closely related to the buyer of the service.
See who is considered to be closely related in this link:
https://www.skatteverket.se/rotrutarbete/utforarenfarintevaranarstaende
How will your invoice be itemised?
The following information must be stated in your invoice:
– information about the work that has been performed
– the allocation of the costs or expenses related to the work between materials, equipment or machine rental, other equipment or tools, and travel
– the amount of the tax reduction
– if the invoice only relates to labour costs, this should be stated in the itemisation
– details of where the work was done
Who applies for the deduction from the Swedish Tax Agency?
For all invoices you prepare as ROT or RUT work via our website, Frilans Finans will seek to take a deduction for. We will have all the contact with the Swedish Tax Agency regarding this, and your wages are already paid out when the customer has paid their share of the invoice.
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