What is the RUT deduction?

The RUT deduction, which stands for Rengöring, Underhåll och Tvätt, is a part of Swedish tax legislation that allows individuals to deduct part of the cost of certain household services from their taxes. The RUT deduction was introduced to reduce undeclared work and make it more affordable for households to buy these services.

What is RUT

When you pay for a service that qualifies for the RUT deduction, you only pay part of the cost directly to the service provider. The rest is deducted directly from your taxes. For this to work, the service provider must report the service to the Tax Agency.

Some examples of services that qualify for the RUT deduction include:

Relocation - Labor costs
Cleaning and window cleaning
Washing and ironing clothes
Snow removal and grass cutting
Simple gardening
Childcare at home
However, there is an upper limit on how much you can deduct per year. As of 2021, this limit was SEK 50,000 per person per year, but you may want to check the current amount as it may change over time.

Here is an example of how the RUT deduction can work:

Let's say you hire us to clean your move for €2,000 (including VAT). we will invoice you only 1000 SEK (50% of the amount), as the remaining 1000 SEK will be deducted through the RUT deduction. We are then responsible for reporting the service to the Swedish Tax Agency, which then deducts 1000 SEK from your tax.

It is important to remember that not all services qualify for the RUT deduction and that there are certain criteria that must be met in order to use it. If you are unsure whether a particular service qualifies for the RUT deduction, you should check with the Swedish Tax Agency or the service provider.