Austria MOF Clarifies VAT Liability for Intra-Community Triangular Transactions Between Companies in Different EU Countries

The Austrian Federal Ministry of Finance July 25 posted online Federal Finance Court Decision No. GZ. RV/7104948/2019, clarifying VAT liability for an intra-community transactions between companies in three different EU countries. The taxpayer was an Austrian company that continued to supply goods to companies in Croatia and Hungary after the expiration of the recipients’ VAT identification numbers. The tax agency held that the transactions were subject to acquisition tax, with non-deductible input tax. On appeal, the Finance Court upheld the tax agency’s decision and stated the transactions should be assessed as chain transactions, because: 1) if entrepreneurs from three different ...