Austria MOF Clarifies Input Tax Deduction Rules for Managing Director, Sole Owner of Company

The Austrian Federal Ministry of Finance Sept. 9 posted online Federal Finance Court Decision No. GZ. RV/7103715/2016, clarifying the input tax deduction rules. The taxpayer, the managing director and sole owner an Austrian IT company, filed a VAT return listing a VAT amount as input tax and claiming a net invoice amount as a business expense. The Tax Office found that the taxpayer failed to meet the input tax deduction requirements because the invoice’s service description couldn’t be submitted during an audit. The taxpayer appealed the Tax Office’s decision to deny the input tax deduction, arguing that the service description ...