Austria MOF Clarifies Input VAT Deduction Rules for Fraudulent Invoices

The Austrian Federal Ministry of Finance April 18 posted online Federal Finance Court Decision No. RV/7103141/2024, clarifying the input VAT deduction rules for fraudulent invoices. The taxpayer, the sole proprietor of a horse boarding business, hired a contractor and subcontractor for a renovation project that resulted in no services being provided. The taxpayer claimed input VAT deductions for the renovation work that the Tax Office denied on the grounds that the invoices were fraudulent. The taxpayer appealed, arguing that the due diligence required wasn’t feasible or realistic. On appeal, the Federal Finance Court found that: 1) the evidence shows that ...