Austria MOF Clarifies VAT Treatment for Employee Use of Employer-Owned Vehicles

The Austrian Federal Ministry of Finance Jan. 29 posted online Federal Finance Court Decision No. RV/2100765/2024, clarifying the VAT treatment for employee use of employer-owned vehicles. The taxpayer, a German limited partnership, provided its marketing employees with Austrian-registered company vehicles for business and private trips. The Tax Office held that the taxpayer was subject to VAT since providing employees with vehicles for private use is considered to be a transportation rental and is taxable in the non-business service recipient’s country of residence, which in this case was Austria. The taxpayer argued that it shouldn’t be subject to VAT since it ...