The Austrian Federal Finance Court upheld the Tax Office’s decision to deny input VAT deductions to a taxpayer who claimed them based on invoices from related companies. The court found that these companies were fraudulent, lacking the resources to provide the invoiced services. Although the taxpayer acted in good faith, they failed to adequately prove the legitimacy of the transactions. Consequently, the court also upheld adjustments to the taxpayer’s income tax assessment, as the claimed business expenses were deemed invalid.
Source: news.bloombergtax.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.
Latest Posts in "Austria"
- ECJ Rules No VAT Liability for Incorrect Rates Charged to Non-Taxable Consumers
- Tax Implications of Hobby in Castle Leasing and Management Under § 2 Abs 5 Z 2 UStG
- VAT Refund for Foreign Entrepreneurs on Austrian Real Estate Services
- Hobby Horse Breeding and Boarding: Tax Implications and Profitability Assessment Changes
- Input Tax Deduction for Test Vehicles Used Exclusively for Development Purposes
