Austria MOF Clarifies Input VAT Deductions on Services Provided Between Related Companies

The Austrian Federal Ministry of Finance Feb. 13 posted online Federal Finance Court Decision No. RV/5100622/2022, clarifying input VAT deductions on services between related companies. The taxpayer, a domestic company, engaged in transactions with related companies. The Tax Office, denied the taxpayer input VAT deductions, finding services invoiced to it by the related parties not based on arm’s length agreements or not rendered. The taxpayer appealed. The Federal Finance Court dismissed the appeal, finding that: 1) the invoices were fictitious and the related companies lacked the necessary infrastructure, employees, or business premise to provide the services; 2) the taxpayer failed ...