Can I deduct my craftsmen services from taxes?
September 30, 2023 | 40,00 EUR | answered by Tatiana Herrmann
Dear tax consultant,
my name is Ulrike Bittner and I am wondering if I can deduct my artisan services from my taxes. I have recently carried out some renovation work on my house and I am unsure if I can claim the costs for tax purposes.
I am uncertain because I have never deducted artisan services from my taxes before and I do not know exactly what requirements need to be met in order to do so. My concern is that I may have to make a tax repayment if I wrongly deduct the costs.
Could you please explain to me under what conditions I can deduct my artisan services from my taxes? Are there specific criteria that need to be met? What is the maximum deductible amount for such services? And what documents do I need to provide in order to prove the costs?
Thank you in advance for your help.
Sincerely,
Ulrike Bittner
Dear Mrs. Bittner,
Thank you for your inquiry regarding the tax deductibility of craftsman services. I would be happy to explain to you under what conditions you can claim these costs in your income tax return.
Craftsman services can generally be deducted for tax purposes as part of household-related services. The prerequisite is that the work is carried out in your own household and that you have paid the invoice in cash or by bank transfer. In addition, the services must have been properly invoiced, and a correct invoice with information about the performing company must be available.
The maximum deductible amount for household-related services is 20% of labor costs, but no more than 4,000 euros per year. This means that you can deduct up to 800 euros annually from your taxes if you provide the corresponding craftsman invoices.
To be able to prove the costs for the craftsman services, you need the invoices from the performing companies. These invoices must include your name and address, as well as the exact scope of services and labor costs. It is important that the invoices are properly issued and paid, as tax authorities may review these documents in the event of an audit.
It is important to emphasize that the tax deductibility of craftsman services is a complex matter, and it is advisable to seek advice from a tax advisor to ensure that all requirements are met and that no mistakes are made.
I hope I was able to answer your questions in detail. If you have any further questions, I am happy to help.
Best regards,
Tatiana Herrmann, Tax Advisor
