Tax bonus also for the e-check!

The Federal Fiscal Court recently ruled that the leak test of a sewer line can, under certain circumstances, be deducted from taxes as a tradesman's service.

This article is part of the special feature " Tax bonus for craftsmen's invoices: What you should know".

The electrical trade is now demanding that this also apply to the so-called E-Check. The inspection of a system's functionality (leakage test of a sewer line) by a tradesman and its repair can be considered a tax-deductible tradesman's service. The repair of damage that has already occurred or preventative measures to avert damage can also be deducted – this was recently ruled by the judges of the Federal Fiscal Court. 

Click here to go directly to the E-Check! The Central Association of German Electrical and Information Technology Trades (ZVEH) now believes: This should also apply to the E-Check . The costs for this recognized testing seal for electrical installations and devices should also be tax-deductible as skilled trades services.

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Why the E-Check?

Photo: © Andrij Popov/123RF.com

The reasoning is somewhat complicated: The Sixth Senate of the Federal Fiscal Court (BFH) ruled that a tradesperson's inspection of the functionality of a system – in this case, a leak test of a wastewater pipe – can qualify as a tax-exempt service , just like the repair of existing damage or preventative measures . According to the ZVEH (Central Association of German Electrical and Information Technology Trades), this ruling also has fundamental implications for services such as electrical safety checks.

Preventive damage control

Previously, tax authorities had compared the leak test to an expert opinion and therefore not considered it. This is because the tax reduction for tradesmen's work only applies to renovation, maintenance, and modernization measures. The judges of the Federal Fiscal Court now saw things differently: The leak test of the sewer line serves to verify the functionality of a building's system, and is therefore a (preventive) maintenance measure. Regular inspection of devices and systems to ensure their functionality increases their service life, ensures their sustainable usability, also serves to prevent damage, and thus is part of the essence of maintenance. This applies even if a certificate is issued "for official purposes."

And this is where the ZVEH brings the E-Check into play: "This service provided by the electrical trades is also a preventative damage prevention and maintenance measure. It helps to increase the service life and ensure sustainable usability." concernedwhose costs for an E-Check were not approved, the association recommends Objection to the tax assessment and, if necessary, to file a lawsuit.

ulo; Photo: © ArGe Medien at ZVEH; © Andrij Popov/123RF.com