Austrian Court Denies Input VAT Deduction for Incorrect Invoices from Nonresident Service Providers

• The Austrian Federal Finance Court clarified input VAT deduction rules for incorrect VAT invoices from nonresident service providers.
• A taxpayer was denied input VAT deduction for an invoice from a German company that incorrectly charged Austrian VAT.
• The court found the reverse charge mechanism should have applied since the supplier had no Austrian establishment.
• The taxpayer failed to prove that correcting the invoice was impossible.
• The input VAT deduction was denied because the VAT was not legally owed on the transaction.

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.

---

---