- Austrian Federal Ministry of Finance posted a court decision on input VAT deduction rules for fraudulent invoices.
- A horse boarding business owner hired a contractor and subcontractor for renovation with no services provided.
- The taxpayer claimed input VAT deductions, which the Tax Office denied due to fraudulent invoices.
- The taxpayer appealed, arguing due diligence was not feasible.
- The court found the subcontractor was a shell company providing no services.
- The taxpayer had a duty to verify the subcontractor’s legitimacy.
- The taxpayer could not deduct input VAT due to lack of reasonable due diligence.
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.
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