- No input VAT deduction is allowed when a private foundation rents an apartment to its founder at less than 50% of the market rent.
- Such an arrangement is considered a hidden distribution.
- This results in the exclusion of input VAT deduction according to § 12 Abs 2 Z 2 lit a UStG.
- Based on the decision of the Austrian Supreme Administrative Court (VwGH) from 17.12.2025, Ra 2024/13/0033.
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.
Latest Posts in "Austria"
- Mandatory E-Invoicing for Austrian Federal Government Suppliers: Rules, Platforms, and Submission Methods
- Austria to Cut VAT on Staple Foods, Hygiene Products, and Contraceptives in 2026
- Subsidy Entitlement for VAT-Exempt Entrepreneurs Operating Care Homes Under Austrian Law
- VAT Exemption for High-Value Residential Rentals from 2026; Input VAT Deduction Disallowed
- Austria Introduces 4.9% Reduced VAT Rate for Essential Foods from July 2026
