Save taxes with tradesman's invoices: Even as a tenant!

Tenants can claim the costs of stairwell cleaning or garden maintenance as household-related services and tradesmen's services for tax purposes, even if the landlord hired the tradesmen or service provider.

This article is part of the special topic Tax bonus for tradesmen's invoices: What you should know

The Federal Finance Court (BFH) has decided that tenants can claim expenses for household-related services and craftsmen’s services according to Paragraph 35a of the Income Tax Act (EStG) can claim this for tax purposes even if they did not conclude the contracts with the tradesmen or other service providers themselves.

The lawsuit was brought by a married couple living in a rented condominium. The landlord provided them with the invoice for additional costs Expenses for stairwell cleaning, snow removal, garden maintenance, and smoke detector inspections were billed. The couple wanted to claim the tax reduction for household services and tradesmen's services under Section 35a of the Income Tax Act (EStG). Their tax office and the tax court rejected this request.

The highest tax courts ruled differently. They ruled in favor of the taxpayers. According to the Federal Fiscal Court's ruling, the fact that tenants do not regularly conclude contracts with the respective service providers, i.e., the cleaning company and the tradesman, does not preclude the tax reduction.

As proof, the utility bill or a sample certificate is usually sufficient 

To qualify for the tax reduction, it is sufficient that the household-related services and craftsmen's work benefited the tenant. The law requires that the taxpayer has received an invoice for the expenses and that the payment has been made to the account of the service provider. A utility bill or a certificate conforming to the model approved by the tax authorities (here as a pdf document) corresponds.

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From the Utility bill or sample certificate However, the type, content and time of the service as well as the service provider and service recipient and the remuneration owed, including an indication of non-cash payment, must be stated.

Only if there are compelling doubts about the accuracy of these documents does the tax office or tax court retain the right to request the taxpayer to submit the original or a copy of the invoices, writes the Federal Fiscal Court. In this case, the tenant must obtain the invoices from the landlord. 

BMF, judgment of 20 April 2023 – VI R 24/20

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