ROT and RUT deductions: important for businesses

What are ROT and RUT?

The ROT and RUT deductions are important for businesses that offer renovation, household and maintenance services. These deductions make it easier for private individuals to buy services, which creates business opportunities for you as a business owner.

The ROT deduction allows private individuals to deduct 30 per cent of the labour cost for renovation, conversion and maintenance, up to SEK 50 000 per year.

The RUT deduction applies to household services such as cleaning, gardening and IT services. Here the customer can deduct 50 per cent of the labour cost, up to SEK 75 000 per year in total for ROT and RUT combined.

Benefits for businesses

By offering ROT and RUT services, you can attract more customers and become more competitive. Because the customer pays less thanks to the deduction, your services become more attractive.

How does it work for business owners?

As a business owner, you handle the deduction by subtracting the ROT or RUT amount directly on the customer's invoice. You then request payment of the remainder from the Swedish Tax Agency (Skatteverket). This means you get paid for the whole job, while the customer pays a lower cost.

Important things to keep in mind

The ROT and RUT deduction applies only to the labour cost, not to materials or travel.

The customer must be at least 18 years old, be liable to pay tax in Sweden and have paid enough tax to cover the deduction.

Summary

For businesses offering construction or household services, the ROT and RUT deductions are an important part of the business strategy. By handling the deductions correctly, you can both grow your business and strengthen your customer relationships.

Would you like to offer ROT and RUT to your customers?

Get in touch and we can help you through the whole process. Contact us and get a reply with a quote within 24 hours.