- EU VAT Reform and National Changes: The “VAT in the Digital Age” (ViDA) reform package, published on March 25, 2025, mandates significant changes in VAT law from 2028 to 2030, including structured electronic invoices. Additionally, the BSMG 2025 will eliminate the VAT exemption for PV systems starting April 1, 2025, with transitional measures for systems ordered prior.
- Government Program and Financial Management Updates: The government program (2025-2029) includes measures like the abolition of input tax deductions for luxury real estate, VAT exemptions for feminine hygiene products, and changes in the luxury tax threshold for cars. The VAT Directive Maintenance Decree 2024 introduced important clarifications, including the treatment of greenhouse gas quota sales and the process for VAT refund applications.
- Recent Case Law Insights: The Federal Fiscal Court provided rulings emphasizing the necessity of invoices for input VAT deductions and clarified conditions regarding VAT adjustments in mixed-use real estate. Notable cases included decisions on the taxation of employee car use and the implications of subscription models for online services, highlighting the evolving landscape of VAT jurisprudence.
Source BDO
