Austria MOF Clarifies Input VAT Deduction Rules for Small-Value Purchases in Resale Businesses

The Austrian Federal Ministry of Finance March 10 posted Federal Finance Court Decision No. RV/7101917/2022, clarifying input VAT deduction rules for small-value purchases in resale businesses. The taxpayer, a company engaged in purchasing household quantity goods from retail branches in Austria and exporting them through its business model, claimed input VAT deductions, which the Tax Office denied due to numerous small invoices, missing customer identification, and alleged artificial splitting. On appeal, the Federal Finance Court found that: 1) small-value invoices under 400 euros (US$463) may support input VAT deductions if the taxpayer credibly proves it was the recipient, even without ...