Austria MOF Clarifies Input VAT Deduction From Cover Invoices

The Austrian Federal Ministry of Finance Feb. 20 posted online Federal Finance Court Decision No. RV/7104484/2019, clarifying input VAT deductions on services substantiated by cover invoices. The taxpayer, an individual, engaged in transactions with related companies and sought input VAT deductions for services that these companies invoiced. The Tax Office denied the taxpayer’s input VAT deductions, finding that the listed companies didn’t render the invoiced services, and adjusted his income tax assessment. The taxpayer appealed. The Federal Finance Court dismissed the appeal, finding that: 1) the companies were fraudulent and lacked the necessary employees and infrastructure to provide the services; ...