Neustadt ad Weinstrasse – Making raised beds, potted plants or the pond winter-proof, shortening hedges, trimming trees or sweeping up piles of leaves: When can you specify the costs for fertilizer or grit? Do you have to live in the property yourself? Which works are considered household-related services and which are considered craftsman services – and why is that important? The income tax assistance association United Income Tax Assistance (VLH) shows what is important.
From smaller and larger garden jobs
There are clear distinctions in tax law: all gardening work that could normally be done by a household member is considered household-related services. So smaller tasks such as mowing the lawn, planting, trimming hedges, making the pond or potted plants winter-proof. Larger garden design jobs count as craftsman services. These are tasks such as digging up earth, paving a terrace or laying turf.
VLH tip: The costs for disposing of the green waste can also be stated if the gardener charges for this. It doesn’t matter whether the garden is newly created or simply redesigned. The costs for consumables that a service provider uses, such as fertilizer or grit, can also be taken into account.
From small apartments to large holiday homes
There are two conditions linked to the granting of tax advantages:
The property is located on the associated property and is considered a household for tax purposes – in short, this means that a single taxable person lives there or a community of several, or at least one, taxable person lives there. If this is the case, the costs for the relevant garden services can be stated in the tax return.
This applies even if the client does not live in this house or apartment all year round – i.e. for holiday apartments or holiday homes. The holiday property can also be located in other European countries.
VLH tip: You don’t necessarily have to live in the property yourself. You are also entitled to the tax reduction if you leave the apartment or house free of charge to your own child, for whom you receive child benefit or child-related allowances.
The property must not be a new building. In tax law, a property is considered new construction until it is ready for occupancy. As soon as the apartment or house is completed to the point where you can move in, the new construction phase is over. From 1,200 to 4,000 euros per year
The general rule for all craftsmen’s services is: 20 percent of the wage costs and a maximum of 1,200 euros per year are recognized by the tax office. The client declares all costs in the tax return, the tax office calculates the reduced amount and deducts 20 percent up to the maximum limit from the tax liability.
The same principle applies to household-related services, where 20 percent of the costs are also recognized – with one difference: up to 4,000 euros per year can be claimed for tax purposes for household-related services.
By the way: Anyone who employs a mini-jobber in their own household to do gardening work also has to comply with a maximum limit. The following applies here: 20 percent of the mini-jobber’s annual salary, but a maximum of 510 euros, is recognized for tax purposes by a client.
VLH tip: transfer bills
In order for the responsible tax office to recognize the costs of gardening work as a household-related service or as a craftsman’s service, the invoice must be paid with proof of invoice. One option is bank transfer. The tax office does not recognize invoices paid in cash, even with a receipt.
The following also applies: The corresponding invoice for the service, including proof of payment, must be able to be presented if the responsible tax office inquires. It is also important that the material costs are shown separately from the labor, travel and machine costs – because material costs are not recognized.
The VLH: Largest income tax assistance association in Germany
The wage tax assistance association United Wage Tax Assistance e. V. (VLH) is Germany’s largest income tax assistance association with more than a million members and around 3,000 advice centers nationwide. Founded in 1972, VLH also provides the most consultants certified according to DIN 77700.
The VLH prepares the income tax return for its members, applies for all tax reductions, checks the tax assessment and much more within the scope of the limited advisory authority in accordance with Section 4 No. 11 StBerG.