The fundamental condition for the client to be able to utilise the RUT deduction is that the work must have been carried out in the client’s home.
The client can obtain a RUT deduction for work carried out in his or her parent’s home, provided that the client has paid for the work concerned. A parent cannot obtain tax relief when he or she pays for RUT services in a dwelling lived in by the client’s child or children.
A dwelling refers to premises that the client uses and owns wholly or substantially for housing purposes within the EES area. A garage, storeroom and laundry also count as housing. Moreover, a second home, time-share apartment or country cottage that the client rents, for a shorter or longer period, is counted as a dwelling.
A hotel, guest house (boarding house) or youth hostel is not counted as a dwelling regardless of whether the client stays there for a longer or shorter period. Communal spaces in apartment blocks e.g. common entrances and staircases, are not counted as housing either.
In the case of a dual residence, both dwellings are covered by the term housing
Olle lives and studies in another place than his parents. Olle’s parents hire cleaning services from a local firm once a week so that Olle shall be able to concentrate on his studies. On certain weekends Olle is visited by his parents who utilise his apartment as their weekend accommodation.
Can Olle, or either of the parents, obtain a RUT deduction for the work that the firm carries out in the apartment?
No, neither Olle nor his parents can obtain a RUT deduction. While Olle satisfies the requirement that the work be carried out in his home, he has not paid for the work and, consequently, cannot receive a RUT deduction. His parents, who have paid the cost of the work, cannot obtain a RUT deduction either since the work has not been carried out in their home. Despite the fact that they use the apartment on certain weekends, it is Olle’s home since it is he who uses it as his permanent place of residence.