MOF Clarifies Input VAT Deductions for Flat-Rate Daily, Overnight Allowances Paid to Employees

The Austrian Federal Ministry of Finance Feb. 15 posted online a finance court Decision No. GZ. RV/2100615/2022, clarifying input VAT deductions for flat-rate daily and overnight allowances paid to employees. The taxpayer, a Swiss company, provided staffing services to Austrian companies. The taxpayer claimed input VAT deductions for allowances paid to its employees on a work trip to Austria. The tax agency refused the deductions. The administrative court dismissed the taxpayer’s case. Upon appeal, the finance court held that the taxpayer wasn’t eligible for the deductions because: 2) it wasn’t subject to domestic income taxation in Austria under the 1974 …