Austria MOF Clarifies Input VAT Deduction Rules Regarding Acquisitions of Co-Ownership Shares in Real Estate

The Austrian Federal Ministry of Finance Feb. 25 posted Federal Finance Court Decision No. RV/4100166/2021, clarifying input VAT deduction rules regarding acquisitions of co-ownership shares in real estate. The taxpayer, a real estate company, claimed input VAT deductions on a property purchase, which the Tax Office denied. On appeal, the Federal Finance Court found that: 1) input VAT on real estate was deductible only if, at purchase, the presence of taxable use was more likely than a VAT-exempt sale; 2) the taxpayer’s statements to the Tax Office indicated that a VAT-exempt resale was the most likely scenario, and later assertions ...