- The Federal Finance Court clarified input VAT deduction rules for apartment rentals.
- Input VAT deductions require a clear, externally verifiable intention to use the property for taxable business purposes.
- The taxpayer’s invoicing arrangement with their subsidiary was not at arm’s length.
- The taxpayer failed to show taxable use or waive the small business exemption.
- The Tax Office correctly denied the input VAT deduction.
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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