Austria MOF Clarifies Deductibility, Input VAT Treatment of Business Expenses Claimed by Temporary Staffing Business

The Austrian Federal Ministry of Finance March 12 posted Federal Finance Court Decision No. RV/7102623/2020, clarifying the deductibility and input VAT treatment of business expenses claimed by a temporary staffing business. The taxpayer, a temporary employment agency, claimed deductions for a digital camera, tools, a mobile phone, employee meals, and vehicle lease prepayments, which the Tax Office denied. On appeal, the Federal Finance Court found that: 1) the taxpayer failed to substantiate any business use of the digital camera, tools, and mobile phone, so the deductions for the related expenses and input VAT were properly denied; 2) the employee catering ...