Austria MOF Clarifies Input VAT Deduction Rules for Apartment Rentals

The Austrian Federal Ministry of Finance Sept. 23 posted Federal Finance Court Decision No. RV/5100051/2023, clarifying the input VAT deduction rules for apartment rentals. The taxpayer, an individual, purchased an apartment and leased it to a company for office use, but later amended it to allow subletting. The Tax Office denied the taxpayer’s input VAT deduction for the purchase costs and assessed VAT liability for previous tax years. On appeal, the Federal Finance Court found that: 1) the input VAT deduction requires a clear intention to rent the property at the time of purchase; 2) the changes to the rental ...