Information
Tax bonus
This applies to private customers who are taxed in Germany. Work on leather and upholstered furniture that we carry out at your home can reduce your German income tax as a tradesman's service in the household. Here you can read what the law requires and where the line to workshop work is drawn.
Who this applies to
The tax reduction is part of German income tax law. It is available to private customers who file an income tax return in Germany and have the work carried out in their household in Germany. Businesses and customers taxed abroad cannot claim it.
What the law provides
Under § 35a (3) of the German Income Tax Act (EStG), income tax is reduced on application by 20 percent of the expenses for tradesmen's services in the household, up to EUR 1,200 per year. Only the labour costs are eligible, not the cost of materials. The requirement is that you receive an invoice and transfer the amount to our bank account; cash payment is excluded (§ 35a (5) EStG). The work must be carried out in your household.
Which work we carry out at your home
Work on leather and fabric furniture that can be done on site comes into consideration:
- Deep cleaning of fabric and leather suites
- Leather care
- Leather repairs, for example scratches, burn holes or colour stains
Whether a particular job can be done at your home is something we clarify with you beforehand. Our invoice shows the labour costs separately.
What is not eligible
Work in our workshop does not fall under this tax reduction, even if the piece of furniture returns to your household afterwards. The German Federal Fiscal Court confirmed this in its judgment of 13 May 2020 (VI R 7/18): labour costs for work in the tradesman's workshop are not eligible under § 35a (3) EStG. For us this applies, for example, to faded leather suites that need to be repigmented; this work is only possible in the workshop. Vehicle detailing in our workshop is not eligible either.
Your tax adviser decides in the individual case
Whether and to what extent the reduction applies to you depends on your personal tax situation. Please have this checked by your tax adviser; the tax office decides on recognition. We do not guarantee any particular saving.
