Household service – Dogs – Tax consultant – Hagen – Holzwickede – Kamen – Lünen
A tax reduction of 20% of the expenses, up to a maximum of 4,000 euros, can be claimed for the use of household-related services.
The services must have sufficient proximity to household management, i.e. they must be activities that are usually performed by members of the household. In addition, the service must be performed in the household (Section 35a (2) and (4) EStG).
The Federal Fiscal Court had already ruled that taking care of a pet in the owner’s home is a household-related service.
Activities such as feeding, grooming, employment, and exercise are typically provided by members of the household. Until now, it was questionable whether the mere walking of a dog is also favored and can be considered to be provided “in the household” if it goes beyond the boundaries of the property.
In a recent decision, the Federal Fiscal Court assumed that even walking a dog for one to two hours outside the boundaries of the property can still be considered to be provided in the household according to a spatial-functional interpretation if the dog is picked up at the home and then returned there.
On the other hand, long-term care of a pet outside the home, e.g. for a whole day or during vacations, is not to be regarded as carried out in the household and is accordingly not eligible for benefits.
(Further comments & information on this can be found in our information letter under item 5, issue 03/2018).