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:
Deduction (2019): 6,100 DKK
Broadband connection and installation of a burglary alarm
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.
- 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
- Pruning of shrubs and trees (not tree felling or removal of fallen trees).
- Snow removal
- Cleaning of tiles on patios, driveways etc.
- 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.:
- 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