Austria MOF Clarifies Input Tax Adjustment for Tax-Free Sale of Unused Business Premises

The Austrian Federal Ministry of Finance July 5 posted online Federal Finance Court Decision No. GZ. RV/3100077/2015, clarifying an input tax deduction for the sale of business premises. The taxpayer sold an unused business unit in a shopping center that was being used for commercial purposes. The taxpayer claimed a full input tax deduction, and also made a sales tax adjustment for the acquisition and production costs incurred. The tax agency stated that because the business premises were vacant, only a proportionate input tax deduction should apply. On appeal, the Finance Court upheld the tax agency’s decision and stated that: ...