- Subventions for nursing home renovations are subject to VAT if they can be clearly linked to a specific service.
- These subventions were granted by the state of Lower Austria and paid directly to the building owner.
- The tax liability arises at the end of the reporting period in which the subvention was received.
- It does not matter who makes the payment as long as there is a reciprocal relationship between service and consideration.
- Decision by the Administrative Court on 28 May 2025.
Source: leitnerleitner.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.
