Austria MOF Clarifies Input VAT Flat Rate for Foreign Entrepreneurs

The Austrian Federal Ministry of Finance April 17 posted online Federal Finance Court Decision No. GZ. RV/2100824/2022, clarifying the input VAT flat rate for foreign entrepreneurs. The taxpayer, a German-based limited partnership, generated domestic sales from lecturing activities in Austria. It filed an amended VAT return claiming an input tax deduction based on the average rate of 1.8 percent of total sales. The tax office denied the deduction. On appeal, the Federal Finance Court also denied it, finding: 1) there was no domestic income under Section 98 of the Income Tax Act 1988; 2) there was therefore no domestic operation ...