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Austria

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No input VAT deduction for representation expenses

A company event that includes both business discussions and leisure activities, such as skiing, cannot have its expenses deducted as business expenses. These expenses are considered non-deductible entertainment expenses for income tax purposes and no input VAT deduction is possible. This interpretation is based on the Austrian Income Tax Act and VAT Act, as determined by the Federal Tax Court on June 27, 2023.

Source Leitner & Leitner

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