Austria MOF Clarifies VAT Assessment for Construction Costs of Building

The Austrian Federal Ministry of Finance Jan. 25 posted online Federal Finance Court Decision No. GZ. RV/4100162/2016, clarifying the VAT assessment for construction costs of a building. The taxpayer claimed VAT amounts for the entire construction costs of a residential and commercial building, which her close relatives would partially rent. The Tax Agency denied the claimed business expenses and the deductibility of the disputed VAT. The taxpayer appealed for VAT deductibility, which was denied because no legal questions were raised that were of fundamental importance. The Federal Finance Court upheld the Tax Agency’s decision and found that: 1) the intention ...