ROT – What Applies at the Turn of the Year?

ROT Deduction

The ROT deduction is a tax reduction applied to the invoice, with a maximum of 30% of the labor cost and a maximum of 50,000 SEK per person per year.

Get Paid First – Work Later?

For payments made in 2020, it is possible to receive the ROT deduction for the tax year 2020, provided that the work the payment refers to is completed (and the application is received by the Tax Agency) by January 31, 2021.

How to Invoice

For a customer to receive the ROT deduction for 2020 for work performed in January 2021, the customer must pay an invoice in advance during 2020 that covers any materials plus 70% of the labor cost.

Work First – get Paid Later?

If a ROT job is performed in 2020 but paid for in 2021, the ROT deduction applies to the tax year 2021.

Requirement for Electronic Payment

As of January 1, 2020, it is no longer possible to pay with cash for completed ROT and RUT work. To qualify for the tax reduction, electronic payment is required. Examples of electronic payments include payments with a credit card, payment slip, BankID, or Swish. Payments with checks or cryptocurrencies like Bitcoin are not considered electronic payments.

Source: Björn Lundén