2025.06.02
Few households take advantage of RUT deductions for appliance repairs, according to SVT's analysis - Applia calls for reforms
Although the RUT deduction for white goods repairs was introduced in 2017 to promote sustainable consumption, new statistics from the Swedish Tax Agency show that only around 88,000 deductions were made in 2024, slightly SVT lifts. This represents a small percentage compared to the approximately two million ROT and RUT deductions that are handled annually.
According to Applia Sweden, the trade association for white goods manufacturers and importers, the current system is insufficient to achieve the goal of increased circularity. In its 2023 report, Applia points to several obstacles:
- Limitation on labor cost: Only the labor cost is deductible, which means that costs for spare parts and transportation are not covered.
- Geographical challenges: In sparsely populated areas, where long travel distances are common, non-deductible transportation costs can be significant and discourage the use of repair services.
- Restriction to home: The RUT deduction only applies to work carried out in or close to the home, which excludes repairs carried out in a workshop.
Current rules mean, for example, that of an average repair that costs around SEK 3,000, the deductible part is only around SEK 600, the remaining costs consist of spare parts and travel time/service car. Only the cost of work that takes place at home is deductible, which means that of the SEK 600, the consumer receives around SEK 200 in RUT deductions.
– Our assessment is that consumers save their RUT deduction for services that largely consist of labor costs, such as cleaning, says Matts Spångberg, CEO of APPLiA.
Applia's proposed changes to the design of the RUT deduction
To increase incentives for repairs and thereby promote a circular economy, Applia proposes the following changes:
- Increase the maximum amount for the RUT deduction to SEK 75,000, as has been previously suggested in investigations.
- Let the RUT deduction also apply to small household appliances (e.g. coffee makers, toasters) – not just larger appliances – and review the list to include more products.
- Allow to repairs made outside the home, for example in a workshop, are also covered by the RUT deduction.
- Let transportation costs from home to the workshop be included in the deduction – for both small and large household appliances.
- Count the service technician's trip to the customer's home (so-called cancellation costs) in that which gives the right to RUT deductions.
- Reduce bureaucracy in the system instead of making it more complicated.
- Introduce or evaluate the possibility of reduced VAT for repair services – it could make the system simpler and reduce the administrative burden.
Applia believes that these changes would make it more financially attractive for households to repair their appliances instead of buying new ones, which would contribute to reduced environmental impact and promote more sustainable consumption.
