Austria MOF Clarifies Input VAT Deduction Rules for Incorrect VAT Invoices

The Austrian Federal Ministry of Finance March 9 posted online Federal Finance Court Decision No. RV/7100961/2023, clarifying input VAT deduction rules for incorrect VAT invoices. The taxpayer, a construction company, claimed input VAT on subcontractor invoices that improperly included VAT, which the Tax Office denied. On appeal, the Federal Finance Court found that: 1) under Section 19(1a) of the VAT Act, VAT on construction services is always owed by the recipient when the recipient is a contractor who typically performs construction services, regardless of invoice wording; 2) incorrect VAT on invoices isn’t deductible unless corrected, and that the taxpayer failed ...