Understand Deductions

What is a service- and carpenter deduction

get a service- and carpenter deduction

What is a service- and carpenter deduction?

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

But according to Skat, we are still missing out on up to half of all eligible carpenter deductions. This is because it is not always quite straightforward to figure out when you are eligible for a deduction and how this should be reported to Skat.

In this article, we will cover:
  • What a service- and carpenter deduction is
  • When it applies
  • Other conditions you will need to be aware of
  • Whether you are eligible to receive any deductions

What is a service- and carpenter deduction?

A service- and carpenter deduction is a deduction you are eligible to receive if you are having certain renovations done to your home such as cleaning, gardening or replacing your windows. This can be renovations made to your home as well as your vacation home.

This is also referred to as a service deduction, which, when it comes down to it, is the same exact deduction. However, there are different types of services that are separated into "services" and "carpenter services" to which the deduction is different. We will cover exactly which is which down below.

When does the service- and carpenter deduction apply?

There are two general types of services for which you can receive deductions, "services" and "carpenter services" These cover the following types of work:

Services

Cleaning and
window cleaning

Childcare

Gardening

Deduction (2019): 6,100 DKK

Carpenter services

Broadband connection and installation of a burglary alarm

Energy savings

Other green-initiative
carpenter services

Deduction (2019): 12,200 DKK
But what does "energy savings" even entail and what type of cleaning is covered?

Skat has defined a long list of examples of specific services, which we have summarized here. These are just examples; however, they offer you an insight into what makes you eligible for a deduction.

Services

  • Washing and wiping surfaces in the home
  • Cleaning of the toilet and shower
  • Vacuuming, floors cleaning and polishing
  • Dish washing laundry and ironing
  • Cleaning or washing of carpets, curtains, blinds, etc.
  • Interior window cleaning
  • Exterior window cleaning
  • Childcare at home or at a holiday home (assistance with homework not the main task)
  • Dropping off and picking up children to and from day care, school, leisure club and after school activities
  • Mowing the lawn
  • Trimming hedges
  • Weeding
  • Pruning of shrubs and trees (not tree felling or removal of fallen trees).
  • Snow removal
  • Cleaning of tiles on patios, driveways etc.

Carpenter services

Broadband connection

  • Installation of broadband cables on own land.
  • Installation of receiving equipment for mobile and fixed wireless broadband along the outer perimeter of the home

Installation of a burglary alarm

Roof insulation, e.g.:

  • Carports, garages and conservatories (if the roof is part of the same roof construction as the roof of the home)

Repair and improvement of the chimney, e.g.:

  • Installation of insulating lining
  • Installation of filter
  • Installation of smoke extractor
  • Changes to chimney height

Replacing windows and window frames and patio doors with glass, e.g.:

  • New windows and window frames
  • New patio doors and French balcony, of which the majority is made off glass.
  • Front windows
  • Replacement of windows and doors in conservatories

Replacement of exterior doors, patio doors etc., e.g.:

  • New doors (door locks are only covered by the deduction in the event of replacing exterior and patio doors).

Insulation of exterior walls, e.g.:

  • Insulation
  • Cavity wall insulation

Insulation of floor, e.g.:

  • Insulation of terrain deck and crawl space leading up to floor

Installation or replacement of heating control system, e.g.:

  • Radiator thermostat valves
  • Weather compensation system
  • Time control
  • Replacement of radiators (though not electric elevators)

Work on solar panels, solar cells and household wind turbines:

  • Installation, repair or replacement of solar panels
  • Installation, repair or replacement of solar cells – except when the rules for business activities are in effect.
  • Installation, repair or replacement of household wind turbines – except when the rules for business activities are in effect.

Installation, repair or replacement of gas boilers and heating systems, excluding oil boilers, bio-boiler plants, pellet boilers, biomass boilers and solid fuel boilers, e.g.:

  • Solar heating system: The entire solar heating system including the hot water tank
  • Water heaters in connection with the installation of boilers etc.
  • Setting up the service pipe

Replacement or repair of district heating units

Installation of heat pumps, including geothermal heat pumps, e.g.:

  • Heat pumps, including air-to-air heat pumps with and without cooling function
  • Geothermal heating: The entire geothermal heating system, incl. geothermal hose

Installation or improvement of ventilation, e.g.:

  • Balanced ventilation system with heat recovery

Installation or improvement of certain drainage installations and drain, e.g.:

  • Sewage worker on own land
  • Replacement of sewer pipes
  • Renewal and establishment of drain
  • Replacement of a collection tank
  • Leakage systems
  • Mini treatment plant
  • Root-zone system
  • Backflow preventers
  • Dry well

Exterior paint jobs (excluding the roof), e.g.:

  • Painting window frames (exterior)
  • Painting doors (exterior)
  • Painting exterior walls

Interior paint jobs are not eligible for deductions.

Disassembly of wood stoves:

  • Removal of existing wood stoves and fireplace inserts (includes the actual dismantling and disposal of the stove / fireplace insert as well as walling off the hole in the chimney where the stove / fireplace insert was connected)

Radon protection, e.g.:

  • Radon extraction

What else do you need to be aware of?

A service- and carpenter deduction has several other conditions put in place to ensure that it is used correctly. The most important conditions are:

  • You must pay electronically, e.g. with dankort or MobilePay
  • You must pay before March 1st of the following year
  • The deduction only applies to maintenance and repairs
  • You are not eligible to receive the deduction if you have received a grant to work from a public support scheme or through your insurance
  • You must be able to provide an invoice, receipt or other relevant documentation
  • If the work is conducted by a business, the invoice must include VAT
  • If the work is done to a holiday home you rent out, you are not eligible to receive a deduction for services
  • If you live in a rental home or a housing co-op, you will need to check whether you are assigned the 'maintenance obligation' (this will typically be stated in your contract). Otherwise, you will not be eligible to receive the carpenter services deduction (although you can still receive deduction for the other category of services as explained above)

Check to see if you are eligible for any deductions

The service- and carpenter deduction offers a great opportunity to get "a discount" on environmentally conscious renovations and other assistance with the home.

However, it is crucial to be aware of its conditions, exceptions, reporting requirements etc. This can easily become somewhat of a jungle to navigate.

That is why we at Tax Helper have created an easy and intuitive platform that comfortably allows you to check if you fulfill the requirements to receive the service- and carpenter deduction and make it all the way to the finish line in terms of reporting your deductions to Skat. It is free to try out, and you only pay if you save money on your taxes.