EU Council proposal: Austria to Continue Excluding Private Use VAT Deductions

Austria’s Special VAT Measure: Austria seeks to continue excluding input VAT deductions for goods/services used >90% for private purposes.
Effective VAT Collection: The measure reduces administrative burdens, simplifies VAT collection, and prevents tax evasion.
Extension Request: Austria requested an extension until 2027, supported by a positive report on the measure’s effectiveness.
Limited Impact: The measure minimally affects total VAT collected and Union’s VAT resources.
Next Steps: If further extension needed, Austria must submit a report by 31 March 2027.