Austria MOF Clarifies Denial of Input Tax Deduction in Suspected Fraudulent Transactions

The Austrian Federal Ministry of Finance June 5 posted online Federal Finance Court Decision No. RV/3100238/2024, on denial of input VAT deductions in suspected fraudulent transactions. The taxpayer, a limited liability company, owned a motor vehicle dealership and claimed a VAT exemption on vehicle deliveries to a Dutch intermediary. The Tax Agency denied the exemption, citing a lack of proper dispatch documentation and suspected VAT fraud. The taxpayer claimed it met the material requirements for the exemption, and formal deficiencies shouldn’t negate the exemption. On appeal, the Federal Finance Court held that the VAT exemption was correctly denied, because: 1) ...