Austria MOF Clarifies Input VAT Deductions for Apartment Rental Activities

The Austrian Federal Ministry of Finance April 15 posted online Federal Finance Court Decision No. RV/1100335/2021, clarifying input VAT deductions for apartment rental activities. The taxpayer, an individual, claimed negative income and input VAT deductions from the rental of a three-room apartment. The Tax Office denied the claimed deductions related to the rental activity, considering such activities to be a hobby, and disregarded the negative income. The taxpayer argued that the rental should be considered a business activity, entitling her to input VAT deductions. On appeal, the Federal Finance Court found that: 1) the rental activity wasn’t conducted with the ...