Austria MOF Clarifies Input Tax Deduction From Settlement Amount

The Austrian Federal Ministry of Finance March 20 posted online Federal Finance Court Decision No. RV/1100178/2022, clarifying input VAT deductions on legal settlement amounts. The Taxpayer claimed an input VAT deduction on a legal settlement amount, IT maintenance, tax advice, operating costs, and rent. The Tax Agency denied the deduction on the settlement due to a lack of proper invoices. The Taxpayer argued that the settlement amount should be considered a gross amount, entitling the Taxpayer to an input tax deduction. On appeal, the Federal Finance Court dismissed the appeal, finding that: 1) an input tax deduction is possible for ...