The service deduction was introduced in 2011 with the aim of helping citizens manage the cost of some of the most common everyday services.
The deduction is a tax relief where a portion of the cost of certain services can be deducted from your taxes. This means that you actually pay less tax if you have used these services. Exactly what is what is explained below.
It only takes 15 minutes to try TaxHelper and you'll get an average of DKK 2,704 extra back in tax
At the same time, you only pay if you get a tax saving.
There are several different types of services that you can claim a deduction for. Some of the most relevant include:
1. cleaning deduction:
Home cleaning expenses are also tax deductible. This applies to both private individuals and companies that use cleaning services.
2. Gardening:
If you've had help with gardening, such as mowing the lawn or pruning trees, you can also claim the deduction.
3. Childcare:
Ifyou have paid for childcare for children under the age of 11, you can also claim a deduction for these expenses.
While the service deduction can be a great help, there are some important conditions and key points to be aware of:
1. Limits on deductions:
Thereare annual limits on how much you can deduct for each service. It is important to be aware of these limits to make the most of the deduction.
2. Registered companies:
If the work is done by a company, the company must be registered for VAT and report the income correctly. It is therefore always a good idea to make sure that the company you use is registered. If you get help from a private person, you should instead use the person's CPR number to claim the deduction.
3. Services in the home:
Only services performed in your home are eligible for deductions. If the work is performed outside the home, it is not deductible.
4. Documentation:
To claim deductions, you need to be able to document your expenses, so make sure you keep receipts and invoices.
The service tax credit is a great opportunity to save a little money on some of the most common services. It can help ease the financial burden.
By being aware of the different deductible benefits and the conditions for claiming deductions, you can make the most of this tax relief.
You can get more advice right here.
In TaxHelper, we help you find the deductions you're entitled to. You answer a few simple questions that take just 15 minutes to complete.
Then we report the deductions, and you get an extra DKK 2,704 back in tax. At the same time, you only pay if you get a tax saving.