Austria MOF Clarifies Input VAT Deduction Rules for Commercial Vehicle Rentals

The Austrian Federal Ministry of Finance Feb. 12 posted online Federal Finance Court Decision No. RV/3100678/2025, clarifying the input VAT deduction rules for commercial leasing of vehicles. The taxpayer, a company, acquired multiple passenger cars and claimed input VAT deductions on intra-community purchases, stating it used the vehicles for commercial leasing within its group. The Tax Office denied the input VAT deduction because the taxpayer only leased the vehicles to related companies. On appeal, the Federal Finance Court found that: 1) input VAT deductions for vehicle rentals require a clear and objectively verifiable commercial rental activity exceeding mere asset management; ...