European Commission Adopts Proposal for Council Decision on Austria’s Request to Extend VAT Deduction Exclusion

The European Commission (EC) Oct. 10 adopted Proposed Council Implementing Decision No. COM (2024) 448, on Austria’s authorization request to continue applying a special measure deviating from Articles 168 and 168a of EU Directive 2006/112/EC, on the common system of VAT. Austria seeks the extension to continue prohibiting VAT deductions on goods and services that a taxable person uses for over 90 percent non-business or non-economic purposes. The deviation is intended to simplify collection procedures and prevent VAT evasion or avoidance. The decision includes measures to: 1) extend Austria’s authorization to Dec. 31, 2027, from Dec. 31, 2024; and 2) ...