During an external audit conducted on a party that operates hospitals, it was discovered that the party sold old materials, such as X-ray film waste, to scrap dealers who provided credits citing the transfer of the tax debt under § 19 Abs. 1d of the UStG 1994. The sales were not qualified as subsidy-reducing by the party, and were considered tax-exempt under § 6 Abs. 1 Z 18 iVm Z 25 UStG 1994. However, the tax debt transfer was not applicable because no tax liability arises from tax exemption. Therefore, a subsidy reduction of 10% was to be applied for the years 2012 to 2016 since the fees were not derived from public funds. The party filed a complaint against this decision, which was dismissed. The party argued that the specific provision of § 19 Abs. 1d UStG 1994 overrides the general provision of § 6 UStG 1994. The Federal Fiscal Court partially granted the complaint, stating that the party had taxable revenues from the sale of old materials, which were subject to subsidy reduction.
Source: ris.bka.gv.at
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