VAT Implications on Training Cost Reimbursement for Non-Deductible Banks in Austria

• Inquiry from WKO Tirol dated April 8, 2025
• Members in the banking sector have a question about training cost reimbursement
• Banks are not eligible for input tax deduction, leading to potential double VAT burden
• Exception applies to course providers exempt from VAT
• Question if this double burden aligns with legislative intent
• Response indicates no direct link between reimbursement payment and employer service
• Training cost reimbursement is considered non-taxable compensation
• No VAT double burden arises

Source: bmf.gv.at

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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