Tax refunds for work done in the home

[YorkshireLad6 7,152]

 

I'm surprised no-one has picked this up so far.

 

The tax authorities reinforced and enlarged upon an earlier announcement this week that they will allow tax payers who employ manual services ("Handerwekerleistungen") in the home to reclaim certain costs against their tax bill. This means that if you have your dishwasher or washing machine repaired at home then some of the costs can be offset against tax. Up to 20% of labour costs to a maximum of 3000 Euros can be claimed per year (so effictively up to 600 Euros offset against tax). This rule was originally to financially compensate homeowners for modernisation and repair, but has now been extended to cover all manner of work in the home. whether owned or rented. The tax rebate can be claimed only for the actual labour costs involved, not for parts or new equipment, and then only for actual work carried out in the home. These costs can also be claimed for the installation of new equipment, so would be valid for satellite installation, or maybe setup of telephone, internet or PC. They also extend to other services such as carpet laying, painting and decorating, cleaning, chimney cleaning or household help. The following conditions must be met:

• The work must be carried out by a registered freelancer or company
  
• a formal invoice is issued and paid for by bank transfer (evidence in the form of your bank statement may be required)
  
• the work is carried out in the home (if a TV is taken away for repair it does not count)
  
• Only labour costs apply - parts used for repair or replacement or costs of new equipment do not apply, although travel cost to and from job do
  

The allowance backdates to work carried out after 01.01.2006, so for those of you currently completing last years tax refunds hunt down those invoices now! For people living in a Miet- or Eigentümsgemeinschaft (owners or renters association) jointly paying for services such as Hausmeister or Gardner, then their share of these costs (usually shown in the nebenkosten roll-up) also apply for the allowance.

 

Part of the opening up of earlier announced benefits is to encourage the small-business economies and to discourage "cash deals". If a worker offers 10% discount "for cash" then the customer will get a better deal if he gets a bill and claims 20% refund from the tax man.

 

For the those who want to read more in exciting detail, or if your Steuerberater does not agree, then have them read the enticing Schreiben des Bundesfinanzministeriums, Aktenzeichnen IV C 4-S-2296b-60/06 for more information.

[HellesAngel 1,889]

Do you think the motivation behind this is to try to cut down schwarzarbeit. This bit "a formal invoice is issued and paid for by bank transfer (evidence in the form of your bank statement may be required)" seems to give it away. An interesting idea as I'm just spending thousands renovating my flat...

[YorkshireLad6 7,152]

That's EXACTLY the motivation behind it. Well spotted. I'll call the taxman and tell them what rats they are to spoil such a budding market.

[graham_d 7]

Anyone know if this also applies to Handwerkerleistungen for a new build house rather than work on an existing one? Although obviously once the electrician or plasterer are doing work on it, the house does exist... just isn't lived in yet.

 

I also have from somewhere the idea that the limit is one of the things under consideration in the anti-Finanzkrise package - am I imagining things or was this mentioned? And did anything come of it?

[Guy 196]

 

I also have from somewhere the idea that the limit is one of the things under consideration in the anti-Finanzkrise package - am I imagining things or was this mentioned? And did anything come of it?

They've doubled the limit of how much tax relief you get, from €600 to €1200, as of 1.1.2009.

 

Steuertipps.de

[Freising 503]

 

Anyone know if this also applies to Handwerkerleistungen for a new build house rather than work on an existing one? Although obviously once the electrician or plasterer are doing work on it, the house does exist... just isn't lived in yet.

It´s called "Haushaltsnahe Handwerkerleistungen". If you are not yet living there, then I would say: It´s not a "Haushalt" yet.

 

Anyway more specific information from a trustworthy source:

It does not apply to "Neubaumaßnahmen"; and that means everything that has to do with the creation or enlargement of living space.

 

 

I also have from somewhere the idea that the limit is one of the things under consideration in the anti-Finanzkrise package - am I imagining things or was this mentioned? And did anything come of it?

I think I heard so too. I´m sure we will read about it very soon.

[YorkshireLad6 7,152]

The benefits of this little known bonus from the taxman have increased and been further clarified. Anyone currently completing their tax forms for 2009 should look closely at what they can claim. For example:

 

Services in and around the home:

 

• cleaning services
• window cleaning
• Hausmeister services
• snow clearing
• chimney sweep
• gardening
• looking after children or relations living with you
• costs of moving/relocation (when not paid by someone else or claimed elsewhere in a tax submission)

You can claim 20% of up to €20,000 per year (so max €4,000). If any of these services are included in "Nebenkosten" in rented property as many often are, then your landlord should provide you with a receipt of your share in the contribution to common services such as Hausmeister, cleaning common areas, snow cleaning, chimney sweep, etc

Technical services and repairs:

• fixing heating or plumbing
• fixing appliances such as dishwasher, washing machine, TV
• installing, repairing of enlarging of services such as phone, internet, satellite (must be part of "modernisation")
• decorating

Only labour costs (and travel costs if applicable) benefit - 20% of up to €6,000 (so max €1,200), and only for services taking place in the home (removing a dishwasher to repair it does not count)

 

Minijob in the home:

 

• formal employment of a cleaner
• a nanny

All such jobs must be registered with the Minijobzentrale and are subject to a maximum payment of €400/month, 20% of up to €2,580 (€510) of which can be claimed back per year.

 

You can combine the categories, so up to 20% of a potential maximum €28,580 can be claimed back. Note this is NOT a tax offset - you actually get the 20% repaid to you by the taxman.

 

In all cases you must have receipts to prove the claim and have paid the invoice by bank transfer for which you have a bank statement available (you don't need to submit these receipts with the claim but may be subsequently asked to provide them)

 

Source and further detail from the Bundesfinanzministerium

[woolleym 35]

Thanks for this info, I didn't realise there were 2 categories; this should help a bit, as after I had the bathroom redone last year, we maxed out on the buiding work part I reckon - but I may have some stuff I can put into the other category!

 

Also, excellent link, saved for future reference!

[YorkshireLad6 7,152]

Another posting on TT has mentioned the need for an official receipt from a landlord for the tenants share of services provided in an apartment or housing block which can be used to claim this tax benefit. If it has not already been provided in your Nebenkosten roll-up you need to request a "Bescheinigung der haushaltnahen Dienstleistungen" according to "§35 EStG". There is no obligation for the landlord or management company to provide this for free (although many do) - there may be a small charge - €25 would seem reasonable.

 

There is also an issue of timing - many taxpayers who submit their own tax return and have to do so by the end of May following the tax year. There is no obligation for the landlord to provide his costs roll-up for up to a year after they are incurred, so it can often be the case that you do not have the evidence required in time to submit the tax return. In such cases it should not be a problem to submit the claim for this recovery in the year following, so long as the documentation itself has been issued in the year of the tax claim, even if it refers to costs incurred the year before.

[maurice74 14]

yes, it is a general rule that you claim the expenses in the year that you did, not in the year that it is related

 

About the "Nebenkosten":

I have the following voices from my final bill:

 

Wasserversorgung

Müllgebühren

Gartenpflege

Gebäudereinigung

Winterdienst

Hauswart

Hausm. u Treppenh.

Gebäudeversicherung

Haftpflichtvers.

Glasversicherung

Strom Hausbeleuchtung

Grundsteuer

Heizkosten

Warmvasser

Rauchwarnmelder

 

I put in bold the voices that I guess it should be put in the tax return.

Can you confirm or discuss about that?

Also...where is the place in which I have to put there...and how much? (20% ?)

[PandaMunich 16,864]

 

... you need to request a "Bescheinigung der haushaltnahen Dienstleistungen" according to "§35 EStG".

 

from your Hausverwaltung.

 

Where to claim for it (you put in all of it, and will get back 20%):

 

• 
  
  
• Mantelbogen ESt1V, page 2
  
• Mantelbogen ESt 1A, page 3
  

 

 

For future reference: http://bit.ly/1g0lgzV

[maurice74 14]

so, probably no way

because the Hause owner will ask for that reduction, giving the Fianzamt all the details

and the bank movements

 

Edit: ok...I will try to check with him...no depression ;-)

[YorkshireLad6 7,152]

The house management company or landlord is legally obliged to give you the certificate of expenses if requested (most simply supply it with your Nebenkosten bill in any case), although they are entitled to make a small charge for arranging it, and as YOU paid the money, any benefit you get from the taxman is yours alone.

[Route66 6]

Is this valid also for people paying a Pauschalmiete, where there is no breakdown of Kaltmiete + NK?

 

Thanks

[YorkshireLad6 7,152]

Only if you can persuade your landlord to give you a certificate of applicable expenses. There's no reason why he shouldn't.

[rachit 5]

I recently got this certificate from my previous landlord (where I lived in 2013). The certificate is issued in the name of my landlord, because as such my landlord pays these costs to the hausverwaltung, but I paid these costs as a part of rent. Can this be a problem or do I need to ask my landlord for another letter stating that I stayed at his apartment and paid him the nebenkosten and thus, linking all these documents together?

[SohM 2]

Hello,

 

In my tax return I claimed for our gardening and cleaning costs as "Handwerkerleistungen". But surprisingly the officer simply ignored my request and didn't even request for any document; just ignored it!! According to the invoice that I received from my landlord for additional costs of 2018, I filled "Anlage Haushaltsnahe Aufwendungen" form and file 799 Euro as "Gartenpflege; Treppenhausreinigung". 

 

Could you please help me how I can reply to the tax office and request for considering the "Handwerkerleistungen"? Thank you in advance.

 

Regards, 

[scook17 292]

On 07/02/2007, 21:15:29, YorkshireLad6 said:

 

I'm surprised no-one has picked this up so far.

 

The tax authorities reinforced and enlarged upon an earlier announcement this week that they will allow tax payers who employ manual services ("Handerwekerleistungen") in the home to reclaim certain costs against their tax bill. This means that if you have your dishwasher or washing machine repaired at home then some of the costs can be offset against tax. Up to 20% of labour costs to a maximum of 3000 Euros can be claimed per year (so effictively up to 600 Euros offset against tax). This rule was originally to financially compensate homeowners for modernisation and repair, but has now been extended to cover all manner of work in the home. whether owned or rented. The tax rebate can be claimed only for the actual labour costs involved, not for parts or new equipment, and then only for actual work carried out in the home. These costs can also be claimed for the installation of new equipment, so would be valid for satellite installation, or maybe setup of telephone, internet or PC. They also extend to other services such as carpet laying, painting and decorating, cleaning, chimney cleaning or household help. The following conditions must be met:

• The work must be carried out by a registered freelancer or company
• a formal invoice is issued and paid for by bank transfer (evidence in the form of your bank statement may be required)
• the work is carried out in the home (if a TV is taken away for repair it does not count)
• Only labour costs apply - parts used for repair or replacement or costs of new equipment do not apply, although travel cost to and from job do

The allowance backdates to work carried out after 01.01.2006, so for those of you currently completing last years tax refunds hunt down those invoices now! For people living in a Miet- or Eigentümsgemeinschaft (owners or renters association) jointly paying for services such as Hausmeister or Gardner, then their share of these costs (usually shown in the nebenkosten roll-up) also apply for the allowance.

 

Part of the opening up of earlier announced benefits is to encourage the small-business economies and to discourage "cash deals". If a worker offers 10% discount "for cash" then the customer will get a better deal if he gets a bill and claims 20% refund from the tax man.

 

For the those who want to read more in exciting detail, or if your Steuerberater does not agree, then have them read the enticing Schreiben des Bundesfinanzministeriums, Aktenzeichnen IV C 4-S-2296b-60/06 for more information.

 

Had a new kitchen installed last year. However, the company only provided an overall bill and did not list in the invoice any labour charge. What happens in such cases, is there some assumed percentage of labour costs?

[PandaMunich 16,864]

No.

You have to go back to the company and ask them to amend the bill to also state the labour costs, so that you can claim the 20% tax credit stated in §35a EStG: https://www.gesetze-im-internet.de/estg/__35a.html

[scook17 292]

5 minutes ago, PandaMunich said:

No.

You have to go back to the company and ask them to amend the bill, to also state the labour costs, so that you can claim the 20% tax credit stated in §35a EStG: https://www.gesetze-im-internet.de/estg/__35a.html

Thank Panda. Will do.

 

Income Tax Act (EStG)
§ 35a  Tax reduction for expenses for household-related employment, household-related services and craftsman services

(1) For jobs close to the household, which are minor jobs within the meaning of Section 8a of the Fourth Book of the Social Insurance Code, the standard income tax, reduced by the other tax reductions, is reduced upon application by 20 percent, up to a maximum of 510 euros, of the expenses of the taxpayer.

(2) For household-related employment relationships other than those listed in paragraph ¹ or for the use of household-related services that are not services under paragraph 3, the standard income tax reduced by the other tax reductions is reduced upon application by 20 percent, up to a maximum of 4,000 euros, of the taxpayer's expenses. ² The tax reduction can also be claimed for the use of nursing and care services and for expenses incurred by a taxpayer because of accommodation in a home or for long-term care, insofar as these include costs for services that are comparable to those of help in household are comparable.

(3) ^For the use of craftsman services for renovation, maintenance and modernization measures, the standard income tax, reduced by the other tax reductions, is reduced upon application by 20 percent of the taxpayer's expenses, but by a maximum of EUR 1,200. ² This does not apply to publicly funded measures for which low-interest loans or tax-free grants are used.

(4) The tax reduction according to paragraphs ¹ to 3 can only be claimed if the employment relationship, the service or the craftsman's service in a household of the taxpayer located in the European Union or the European Economic Area or - in the case of care and support services - exercised or performed by the person cared for or cared for. ² In the cases of paragraph 2 sentence 2 second half-sentence, it is a requirement that the home or the place of permanent care is located in the European Union or the European Economic Area.

(5) The tax reductions according to paragraphs ¹ to 3 can only be claimed if the expenses do not represent operating expenses or income-related expenses and if they have not been taken into account as special expenses or extraordinary burdens; claims for expenses falling under Section 10 Paragraph 1 Number 5 are also excluded. ² The deduction from the standard income tax according to paragraphs 2 and 3 only applies to labor costs. ³The prerequisite for claiming the tax reduction for household services in accordance with paragraph 2 or for tradesman services in accordance with paragraph 3 is that the taxpayer has received an invoice for the expenses and the payment has been made to the account of the provider of the service. ⁴ If two single people live together in one household, they can only claim the maximum amounts according to paragraphs 1 to 3 once.