- Austrian Federal Ministry of Finance posted a decision on input VAT deductions for test vehicles.
- The taxpayer, an engine manufacturing plant, claimed deductions for test vehicles used in engine development.
- The Tax Office denied the deduction, arguing the vehicles’ characteristics didn’t allow for it.
- The Federal Finance Court ruled in favor of the taxpayer.
- Test vehicles were frequently modified and distinct from production vehicles.
- They lacked characteristics of passenger cars, being non-registrable and non-convertible.
- Design and use were similar to racing cars.
- Input VAT exclusion for passenger cars didn’t apply to these test vehicles.
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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