Table of contents:
You must be able to present two pieces of evidence to the tax authorities on request: the invoice and the transfer slip.
The tax office only accepts bank statements or payment slips as proof, however receipts for cash payments are not accepted.
The craftsman invoice must bear the name and address of the client as well as the company, and its tax or sales tax identification number must also be listed.
Also pay attention to the correct date and an invoice number. In addition to the type and scope, the time of the service must be noted on the invoice, as well as the sales tax rate and the amount to be paid. Labor costs must be shown separately, as only these are tax-privileged. Private individuals keep the invoices for at least two years - in the event that the tax office asks or in order to be able to assert possible warranty claims later.
Those who renovate extensively and have high expenses, spread the orders over two years and collect the tax bonus for each year. Example: This year you have the windows replaced by a specialist, and the heating and facade will be modernized next year.
Do you intend to commission craftsmen to work on your house or your rented apartment? To do this, conclude a legally secure contract. This is not that difficult: the owner protection association Haus & Grund and the Central Association of the German Building Industry provide you with a sample contract. Further information on the Internet: www.haus-und-grund.net
Pay attention to the maximum limit
|Labor costs tile work||2, 400 euros *|
|Papering labor costs||1, 300 euros|
|Labor costs for heating exchange||2, 500 euros|
|total||6, 200 euros|
|Tax bonuses 20% of 6, 200 euros = 1, 240 euros||Max. 1, 200 euros|
Example: An apartment owner commissioned a tiler to renovate his bathroom. The invoice of 4, 800 euros includes labor costs of 2, 400 euros and material costs of 2, 400 euros. He also had the walls papered, for which he received an invoice for 1, 500 euros, the share of labor costs was 1, 300 euros. The replacement of radiators costs 5000 euros according to the bill, the share of labor costs is 2, 500 euros. The tax authorities reduce the tax liability by 20 percent of the labor costs, but at most by 1, 200 euros.
* All amounts with VAT
Source: Chamber of Crafts for Munich and Upper Bavaria
In this post you read:
- Save taxes!
- Provide evidence
- Tips from the expert