- Austrian Federal Ministry of Finance allowed input VAT deductions for test vehicles used in engine development
- Case involved an engine manufacturing plant claiming VAT deductions for test vehicles used only in development and testing
- Vehicles frequently modified, not classified as passenger vehicles
- Court compared vehicles to racing cars, not considered passenger cars under case law
- Conversion to regular passenger vehicles deemed economically impractical
- VAT deduction allowed as vehicles were not passenger cars and used solely for testing
- Court ruled in favor of taxpayer, confirming VAT deduction eligibility for test vehicles
Source: globalvatcompliance.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.
