(2023) Household-related services: Are costs for emergency call systems tax-privileged?

Expenses for a home emergency call system may be tax-deductible, depending on the circumstances:

1. As part of "assisted living" in a retirement home, the costs for a home emergency call system are tax-privileged. You can deduct 20 percent from the tax liability. This is in accordance with the Federal Fiscal Court (BFH) ruling of 3.9.2015 (VI R 18/14).

2. If the home emergency call system is used outside of "assisted living" in a retirement home, for example in your own flat, the costs are not tax-privileged.

3. The Federal Fiscal Court (BFH) recently ruled in favour of the tax authorities regarding the second case: Expenses for a home emergency call system that merely establishes contact with a service centre (on-call service) are not tax-privileged as household-related services if the service is provided outside the client's household. This is according to the BFH ruling of 15.2.2023 (VI R 7/21).

The main service of a basic home emergency call system is processing alarms and notifying contacts, the family doctor, care service, etc. by phone, not the pensioner calling the emergency service themselves. Since this key service is not provided in the pensioner's household, it is not tax-privileged.