As you may know, Vero refunds 40% of the labor part of your renovation, house cleaning etc. as tax credit, so any increase in the “labor cost/total invoice” ratio means savings for the customer ([up to a limit](https://www.vero.fi/en/individuals/tax-cards-and-tax-returns/deductions/Tax-credit-for-household-expenses/)).
I was wondering if tactfully asking the company to increase the percentage of the labor as much as they can is acceptable (obviously if it isn’t already set at or close to 100%, like in cleaning services). Is it all the same to them, or is there a downside to the companies? Presumably they have to justify their figures to Vero, but are there sector-specific limits set by law, above which they can’t go even if they wanted to, and I would be asking them to break the law if I came up with a specific number? Thanks in advance for any insights.
by bolyai
1 comment
The material the company uses is VAT deductible.
If the labour cost is increased, this would mean that the company has to have a similar number on their end.
From how I see it, the company would lose VAT deductible costs and increase their cost on labour, which in turn means a higher payment in employer costs.
Im sure there are ways around it where you both benefit, but keeping it completely legal would be hard.
If you know the person running the company well, you can get away with alot without it looking weird.
I might be missing something here, so another point of view would be good.