In Austria, rentals for business purposes are in general exempt from VAT according to Art 6 sec 1 subsec 16 VAT Act and any input VAT directly connected is consequently not deductible. However, Art 6 sec 2 VAT Act provides for the possibility to exercise an option to tax. In this case rentals for business purposes are taxed at the standard VAT-rate of 20 % and any input VAT related is deductible.
Source KPMG
