Austria MOF Clarifies Application of Input Tax Flat Rate Deduction for Commercial Agent

The Austrian Federal Ministry of Finance Aug. 9 posted online Federal Finance Court Decision NO. GZ. RV/5100725/2022, clarifying an input tax deduction for a commercial agent. The taxpayer reported income and then deducted expenses based on a sales agent flat rate, a commercial agent flat rate, and an input tax flat rate. The taxpayer also sought to deduct input tax as an operating expense. The tax authority rejected the taxpayer’s claim, and on appeal the Federal Finance Court agreed and held that: 1) the taxpayer couldn’t deduct input tax as an operating expense when a spurious sales tax exemption was ...