The Austrian Supreme Court of Justice has recently decided that the acquirer (new lessor) of a property is not entitled to raise compensation claims against the tenant to compensate for non-deductible VAT. While Art 30 VAT Act provides for compensation claims in case the economic parameters change due to legislative changes not foreseen at the time of the conclusion of the rental contract, the court argues that in the case of an acquisition of a property, the acquirer typically has sufficient information on the tenants available and, as a consequence, can consider any non-deductible VAT in his calculation of the purchase price.
Source: KPMG
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