Austrian Court Rules on VAT and Corporate Tax for Housing as Hidden Profit Distribution

• The Austrian Federal Ministry of Finance posted a Federal Finance Court Decision on VAT and corporate income tax.
• The case involved a company making improvements to an apartment rented to its sole shareholder and managing director.
• The Tax Office assessed additional corporate income tax and VAT liability, denying input VAT deductions.
• The improvements were considered hidden profit distributions.
• The Federal Finance Court ruled the taxpayer was not entitled to input VAT deductions as the improvements were not business expenses.
• The depreciation amount was correctly adjusted for corporate income tax based on the audit.

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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