The RUT discount (Rutavdrag) has been around since 2007 and has included moving services since 2016. We explain how the RUT discount works and how you can take advantage of it.
What is the RUT discount?
The RUT discount is a tax subsidy for private individuals, offered by the Swedish Tax Agency for household services. The name RUT stands for "Rengöring, Underhåll och Tvätt" in English "Cleaning, Maintenance, and Laundry". In addition to moving help and cleaning, the discount also includes other services such as gardening, tutoring, and IT services at home. With the help of the RUT discount, it is possible to reduce labor costs by up to 50%, making it a very popular benefit in Sweden.
The moving industry loves the RUT discount.
Since the RUT discount was introduced, the moving and cleaning industry has grown exponentially in Sweden, especially in larger cities. We have interviewed Per from Jordgubbsprinsen, a major moving company in Stockholm, that says that more and more companies are emerging. If something goes wrong, it's important to hire a moving company that takes responsibility.
The price pressure is great, and the RUT discount has attracted many unscrupulous actors. As a customer, you should check that the companies have traffic permits, the right insurance, and collective agreements that ensure fair working conditions. It's easy to fall into a trap, says Per.
How does the RUT discount work for moving?
The RUT discount is offered for most moments in the moving process:
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Moving work: Transport and handling of furniture and other belongings between homes or from home to storage.
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Cleaning: A thorough cleaning of your old home before you hand it over to the new owners or tenants.
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Packaging help: Packing of your loose items in boxes and packaging, as well as unpacking of your furniture in your new home.
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Assembly help: Disassembly and assembly of furniture.
To be able to use the RUT discount, the service must be performed by a company registered in Sweden, which has an F-tax and is approved to offer deductible services.
Who can use the RUT discount?
To be eligible for the RUT discount, you must meet certain requirements:
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You must pay taxes in Sweden: You must pay your taxes in Sweden. This applies both if you live in Sweden and if you work here temporarily.
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You must have a Swedish personal identification number:
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Deductible amount: The RUT discount is limited to a maximum of 75,000 SEK per person and year.
How do you apply for the RUT discount?
You don't need to apply for the discount yourself. The service provider will deduct the discount directly from the invoice and handle the administration with the Swedish Tax Agency. Therefore, it is important to choose a reliable and registered company. As a private individual, you are responsible for ensuring that you are entitled to your RUT discount. Make sure you are RUT-eligible. The moving company may request proof of RUT discount in retrospect if it is denied.
The RUT discount can also apply if you move to or from Sweden. If you move to or from Sweden, the RUT discount can be a big help in reducing costs. Read carefully to ensure that you meet the requirements, especially if you only live in Sweden for a shorter period.
