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Austria MOF Clarifies VAT Assessment for Construction Costs of Building

  • The Austrian Federal Ministry of Finance has clarified the VAT assessment for construction costs of a building.
  • A taxpayer claimed VAT amounts for the entire construction costs of a residential and commercial building.
  • The Tax Agency denied the claimed business expenses and the deductibility of the disputed VAT.
  • The taxpayer appealed for VAT deductibility, but it was denied.
  • The Federal Finance Court upheld the Tax Agency’s decision.
  • The court found that the intention to rent out the property was not clearly expressed to the outside world.
  • The disputed property was used privately by close relatives.
  • The agreements between the taxpayer and her family members did not meet the criteria for tax recognition of contracts with close relatives.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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