The purchase of a building by a GmbH (limited liability company) with subsequent rental to the shareholder (private foundation or its related parties) is to be regarded as a mere transfer of use irrelevant for VAT purposes and does not entitle to an input tax deduction if arm’s length conditions were not agreed from the outset. – The arm’s length nature was to be denied because a pre-contractual use with subsequent lump-sum payment without offsetting default interest and operating costs as well as a missing furnishing surcharge was granted. BFG, 23.12.2022, RV/7103706/2010
Source: bmf.gv.at
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