What is ROT/RUT deduction?
When you carry out work for a private individual who is entitled to a ROT/RUT deduction, the customer can receive a tax reduction on the cost of the work. Please note that it is only the labor cost on the invoice that is entitled to the ROT/RUT deduction. Materials and travel expenses in connection with the work do not qualify for a deduction.
Work entitled to ROT, 30%
Refers to repairs and maintenance as well as alterations and extensions, provided that the work is carried out in or close to a dwelling owned by the person entitled to the deduction. ROT deductions cannot be made for completely new houses, nor for extensions to new dwellings (within the first five years).
Work entitled to RUT, 50%
Refers to domestic work carried out in property in which the purchaser of the service or their parents live or stay.
What should the invoice description contain?
– details of the work carried out
– breakdown of the cost of labor or materials, rental of machinery, equipment, and travel.
– the amount of the tax reduction
– if the invoice relates only to labor costs, the specification should indicate this.
– details of where the work was carried out.
Who applies for the deduction at the Tax Agency?
All invoices you design as ROT or RUT via our website, Frilans Finans will seek deductions for. We will have all contact with the Swedish Tax Agency regarding this, and your salary is already paid when the customer has paid his part of the invoice.
Who can use the deduction and how much can be deducted?
A buyer who had unlimited tax liability during the tax year and turned 18 before the end of the year is entitled to receive a maximum of SEK 50,000 in ROT deductions and SEK 25,000 in RUT deductions per person and year. The scope is based on the buyer’s final tax where other possible deductions are first taken into account.
The ROT/RUT deduction can only be used on the cost of the work, where 30% deduction can be made for ROT work and 50% deduction for RUT work. Please note that the service provider must not be related to the buyer.
How do I know that the buyer has enough 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 tax authorities. This shows how much deduction has been used so far this year. Should it turn out that the customer does not have enough ROT/RUT deductions left, Frilans Finans will create an additional invoice for the remaining amount to the customer. Your salary will therefore not be affected.