Tax reduction and lower VAT for repairment of certain products

Published on December 10, 2020

As of 1 January 2017 repairs of white goods carried out in the dwelling qualifies the buyer for a so called rut-reduction. The rut-reduction is a tax reduction (tax credit). This means that the taxpayer’s final tax is reduced.

As of 1 January 2017 a reduced VAT-rate is applied for repairs of bicycles, clothes, shoes, leather goods and household linen.

It is environmentally better to repair and recycle than to dispose of the old white goods and buy new ones. Repairs will use less raw materials and energy and also lower emissions compared to the production of new white goods. Furthermore, it reduces the amount of waste and may even create more jobs. The measures have not yet been evaluated, but the government has estimated the total cost for these measures to lower tax revenues with 430 million Swedish Crowns per year. Contact the Swedish EPA.