Austria MOF Clarifies VAT Treatment for Sales of Developed Property

The Austrian Federal Ministry of Finance May 21 posted online Federal Finance Court Decision No. RV/1100204/2021, clarifying the VAT treatment for sales of developed property. The taxpayer, the sole owner of a property, obtained a building permit for four single-family homes on the property. The taxpayer formed a civil partnership for the purpose of marketing the buildings for sale. The Tax Office assessed VAT on the taxpayer, and the taxpayer appealed. On appeal, the Federal Finance Court found that: 1) the prerequisite for input VAT adjustments is that the change in the conditions governing input VAT deductions occurs within the ...