Austria MOF Clarifies Input VAT Deduction Rules for Incorrect VAT Invoices Charged by Nonresident Providers

The Austrian Federal Ministry of Finance Nov. 17 posted online Federal Finance Court Decision No. RV/5100090/2019, clarifying input VAT deduction rules for incorrect VAT invoices charged by nonresident service providers. The taxpayer, an individual who was engaged in a business, received an invoice from a German company for renovation services, which included Austrian VAT, even though the supplier had no Austrian establishment. The Tax Office denied the taxpayer’s claimed input VAT. The taxpayer appealed, arguing that the VAT was paid to the Austrian Tax Office and that invoice correction wasn’t possible. The Federal Finance Court dismissed the appeal, finding that: ...