Austria MOF Clarifies Loss of Right to Deduct Input Tax

The Austrian Federal Ministry of Finance July 15 posted online Federal Finance Court Decision No. GZ. RV/7101450/2022, clarifying the loss of the right to deduct input tax due to VAT evasion. The taxpayer, an individual, contracted for the renovation of his property. The contracting company hired another company for accounting purposes however the accounting company didn’t actually exist. The Tax Agency assessed sales tax by reducing the input tax deduction accordingly. On appeal, the Federal Finance Court held that the Tax Agency correctly reduced the input tax deduction, because the taxpayer didn’t comply with the duty of care, given the ...