Important to know when you hire help
The deduction for home improvement services was discontinued on 1 April 2022. This means that you are only entitled to a deduction for home improvement services that are completed on 31 March 2022 and paid by no later than 31 May 2022. You can still claim a deduction for household services.
About home improvement services and household services provided by a business
When a business carries out home improvement services or household services in your home, you need to be aware of certain things. Maybe your house is being renovated or maybe you have someone clean your house or windows for you. If the business you use does not pay tax and VAT, you may risk a fine or even imprisonment. It may also affect your right to claim a deduction.
To avoid using illegal labour and undeclared work, we have listed the most important things you should check below. Please note that the rules only apply to services you buy from businesses in Denmark.
A business must be registered for VAT if it has a revenue of more than DKK 50,000.
You should therefore check if the business working for you is registered for VAT as this could be a sign that the business is serious, has no intention of fraud and that you are entitled to a deduction.
You can check whether the business you use is registered for VAT.
Non-Danish businesses must be registered for VAT in Denmark and appear in the Register of Foreign Service Providers (RUT).
Search for VAT numbers in Denmark
Search for VAT numbers in the EU/EEA (ec.europa.eu)
Search for non-Danish businesses in the Register of Foreign Service Providers (www.virk.dk)
It may be a good idea to check whether the business you use has employees registered. You may do so if the owner of the business is not the one to carry out the work at your address.
It could be a case of undeclared work if the business is not registered as an employer and has someone carry out work for them. However, it is not a case of undeclared work if the business uses a subcontractor or casual labour.
If you suspect that the work is carried out illegally, you can look up the business and check that it is registered as an employer.
Check whether a business is registered as an employer at www.virk.dk. You do so by writing the CVR no. (business registration no.) or name of the business in the search field.
All invoices for DKK 8,000 or more including VAT should be paid digitally, for example by credit card, MobilePay or online banking. If a business did not pay tax and VAT on the invoiced amount, we may require you to pay VAT and tax on the part of the amount that you paid in cash.
Protect yourself by:
- paying digitally
- declaring cash purchases in E-tax (TastSelv) within 2 weeks of the purchase
- making sure to get an invoice with an invoice number and the name of the business when you pay in cash.
If you pay digitally you will not be liable for any tax or VAT fraud by the seller.
Pay digitally for regular services too
This also applies if you pay DKK 8,000 or more including VAT for a regular service, such as cleaning or maintenance, provided by the same business over a year.
An example of this could be if you pay DKK 1,000 a month, corresponding to DKK 12,000 a year, for cleaning services. You should therefore make sure to pay digitally.
Read more in Danish about paying digitally for invoices for DKK 8,000 or more
Tax deduction for home improvement services
If you would like to claim a deduction for home improvement services, you should do the following:
- pay all invoices digitally, including invoices for less than DKK 8,000. Cash and checks are not accepted.
- make sure you have documentation for the work, such as an invoice. The documentation must contain information, such as Danish CVR no. (business reg. no.), name, address, date, VAT amount and specification labour costs.
- check that the business has a valid VAT number.
If the above criteria are not met, you are not entitled to a deduction.
Other rules apply to household services, such as gardening, window cleaning and cleaning.
If a non-Danish business is providing a service for you, you should check that the business is included in the Register of Foreign Service Providers (RUT) and that it is registered for VAT in Denmark. That way, you can avoid using illegal labour and supporting undeclared work.
Search for VAT numbers in Denmark
You can check whether a business you are using is legally registered:
Search for non-Danish businesses in the Register of Foreign Service Providers (www.virk.dk)
If you discover that a business is not included in the Register of Foreign Service Providers, you should inform the Danish Working Environment Authority (Arbejdstilsynet) within three days of the work starting, otherwise you risk getting a fine.
Contact the Danish Working Environment Authority (www.at.dk)
If you suspect undeclared work or other illegal activity
If a business is not registered for VAT or is not included in the Register of Foreign Service Providers, you may also report this to us.
If a business carries out home improvement services for more than DKK 50,000 for you, the business is required to put up a construction sign outside. This applies for construction sites as well as for renovation work, such as a bathroom, carried out at your house.
Knowing the rule about required construction signs makes it easier for you to know whether you are dealing with a professional business that follows the rules.
A construction sign must show the name(s) and CVR number(s) of the business(es) working at the site. In addition, non-Danish businesses must also show the registration number they are registered with in the Register of Foreign Service Providers.
The construction sign requirement does not apply if:
- the renovation costs do not exceed DKK 50,000 including VAT.
- the renovation work is carried out and completed within a single working day.
- putting up a sign is not practically possible because work is taking place by a multi-storey building at a building site in a densely built-up area. It is up to the business to assess whether it is possible to put up a sign.
Example 1: Several businesses working on one renovation contract
You want to renovate your bathroom. You therefore book a bricklayer, plumber and painter to work on the same contract. The invoice is for DKK 50,500 and since the three builders are working on the same contract, they need to put up a sign with the name and CVR number of the business.
Example 2: Several independent businesses
You want to renovate your kitchen and you book the builders separately to be in charge of different parts of the renovation. You book a painter from a painting business and a kitchen fitter from a carpentry business. The two businesses do not work together so even though the total renovation costs are DKK 51,000, the businesses do not need to put up a sign.
If you suspect undeclared work or other illegal activity
If the business you are using has not put up a sign according to the rules, you can start by asking the business to do so. If they fail to do so, you can report it to us.
The CVR no. and business name must be visible on both sides of business vans. A business may choose to use a logo instead of the name of the business.
The information displayed on a van lives up to the rules for signage if it is:
- visible and easy to read
- in a contrasting colour to the colour of the van
- fixed to the van
In addition, non-Danish vans should have visible documentation in the windscreen that they are included in the Register of Foreign Service Providers.
It may be a sign of an unregistered business or illegal labour if:
- someone unexpectedly rings your doorbell and asks for work
- you cannot meet the official owner of the business
- the business has no registered address
- the business quotes a price that is much cheaper than other quotes
Is the price fair?
There may be good reasons for different price quotes. For example, depending on whether the quote is from a large or a small business and how the business plans to carry out the work. Small businesses often have lower operating costs.
But if a quote is significantly lower than other quotes you should consider whether it could be fraud and therefore illegal activity.
It may therefore be a good idea to get a quote for the same work from different businesses.
How to protect yourself:
- Get a written quote
- Get an invoice and save it
- Pay digitally for the invoice, if possible
- Declare cash purchases in E-tax
- Get information about the business, such as the VAT number, CVR number, name and address
- Check whether the business is registered for VAT before you agree to a quote.
Search for VAT numbers in Denmark
Search for VAT numbers in the EU/EEA (ec.europa.eu)
Search for non-Danish businesses in the Register of Foreign Service Providers (www.virk.dk)
For further legal information in Danish see our legal guide .