Adjustment of input tax for major repairs under § 12 Abs 10 UStG – BFG ruling

• Input: § 12 Abs 10 UStG
• Adjustment of input tax for major repairs
• Input tax amounts incurred for properties where renovation work was carried out before sales are to be adjusted if the properties are sold tax-free within the specified time period in § 12 Abs 10 UStG.
• It is irrelevant whether the investments are financed by tenants through maintenance and improvement expenses according to § 14 WGG, partly by external funds, or through subsidies.
• For construction measures to fall under the term “major repair” in § 12 Abs 10 UStG, it must be non-activatable expenses that are not incurred “regularly” but are significant.
• Investments such as tiling balconies, renovating stair platforms, renewing entrance doors / canopies that do not exceed EUR 5,000.00 are exempt from adjustment under § 12 Abs 10 UStG as such minor amounts do not have a significant impact.
• BFG, January 8, 2024, RV/4100285/2021

Source: info.leitnerleitner.com

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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