Austria MOF Clarifies Input VAT Deductions on Test Vehicles

The Austrian Federal Ministry of Finance Aug. 6 posted Federal Finance Court Decision No. RV/5100122/2024, clarifying input VAT deductions on test vehicles. The taxpayer, an engine manufacturing plant within a group, claimed an input VAT deduction for the rental and operation of test vehicles used exclusively for engine development. The Tax Office denied the deduction. On appeal, the Federal Finance Court found that: 1) the test vehicles were frequently modified during a test series, with components continuously installed and removed, making them significantly different from production vehicles; 2) the vehicles were similar to racing cars, which are excluded from the ...