- The Austrian Federal Ministry of Finance posted a decision on input VAT deductions for test vehicles.
- An engine manufacturing plant claimed a VAT deduction for test vehicles used in engine development.
- The Tax Office denied the deduction.
- The Federal Finance Court found the test vehicles were frequently modified and different from production vehicles.
- The vehicles were similar to racing cars and couldn’t be registered as passenger cars without high costs.
- The input VAT deduction exclusion didn’t apply as the vehicles lacked passenger car characteristics.
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.
