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 feature " Tax bonus for craftsmen's invoices: What you should know".

The Federal Fiscal Court (BFH) has ruled that tenants can claim expenses for household-related services and craftsmen's services under Section 35a of the Income Tax Act (EStG) for tax purposes even if they did not conclude the contracts with the craftsmen or other service providers themselves.

A married couple living in a rented condominium filed a lawsuit. Their landlord billed them for expenses related to stairwell cleaning, snow removal, garden maintenance, and smoke detector inspections in their utility bill. The couple sought to claim the tax deduction for household-related services and skilled trades services under Section 35a of the German Income Tax Act (EStG). Their tax office and the tax court rejected their claim.

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 

For the tax reduction to apply, it is sufficient that the household-related services and skilled trades work benefited the tenant. The law requires that the taxpayer received an invoice for the expenses and that payment was made to the service provider's account. A utility bill or a certificate conforming to the template recognized by the tax authorities (available here as a PDF document ) is sufficient proof.

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However, the utility bill or sample certificate must specify the type, content and timing of the service, as well as the service provider and recipient, and the fee owed, including information on non-cash payment.

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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