- Austrian Federal Finance Court ruled on input VAT deductions for services between related companies.
- Taxpayer, a domestic company, engaged in transactions with related companies.
- Tax Office denied input VAT deductions, finding services not based on arm’s length agreements or not rendered.
- Federal Finance Court dismissed the appeal, finding invoices fictitious and related companies lacked infrastructure, employees, or business premises.
- Taxpayer failed to provide evidence for transaction legitimacy.
- Denial of input VAT deductions was correct.
- Corporate tax assessments were lawful due to non-recognition of operating expenses and increased balance sheet profit.
Source: news.bloombergtax.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.
