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What is craftsman's allowance?

Aske Buemann

CEO & Co-founder

Craftsman's allowance

The craftsman deduction is one of the most well-known deductions, in fact, over a third of Danes have used it. In 2018 alone, almost DKK 3 billion was reported to Skat in craftsman deductions.

But we still miss out on up to half of the deductions for crafts, according to Skat itself. This is because it is not so easy to understand what you can get a deduction for and how it should be reported to the tax authorities.

In this article we will go through:

  • What the craftsman's allowance is
  • What you can get it for
  • Other conditions to be aware of
  • Whether you can get deductions yourself

What is craftsman's allowance?

The craftsman deduction is a deduction you can get if you have had certain types of work done in your home, such as cleaning, gardening or replacing windows. This can be work done either in your home or in your holiday home.

It is also called the service deduction, which is ultimately the same deduction. However, there are different types of services, divided into "services" and "craft services", for which the deduction is different. Exactly which is which is explained below.

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What can be deducted from the workmen's allowance?

There are two main types of services that can be deducted, 'services' and 'craft services'. They cover the following types of work.

Services provided

  • Cleaning and window cleaning
  • Childcare services
  • Gardening

Artisanal services

  • Connecting broadband and installing an anti-theft alarm
  • Energy savings
  • Energy supply
  • Climate proofing
  • Other green craft services

However, craftsman deductions have changed significantly from April 1, 2022, so after that date, "craft services" will no longer be deductible, while "services" will still be deductible

What else should you be aware of?

The tax credit for craftsmen has several other conditions to ensure that it is used properly. The most important conditions are:

  • You must pay electronically, e.g. by Dankort or MobilePay
  • You must pay by March 1 of the following year
  • The deduction only applies to maintenance and repairs
  • You cannot claim a deduction if you have received a grant for the work from a public aid scheme or your insurance
  • You must have an invoice, receipt or other supporting documents
  • If the work is carried out by a company, VAT must be included on the invoice
  • If you are renting out work in a holiday home, you cannot deduct services
  • If you live in rented or cooperative housing, check whether you have the 'maintenance obligation' (typically in your contract). Otherwise, you can't deduct the cost of the work (you can still deduct the cost of the services)

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