No input VAT deduction on services supplied as shareholder contributions to subsidiaries

In a decision of 8 September 2022 in the case C-98/21, W GmbH, the CJEU addressed the question as to whether supplies obtained by a parent company in order to forward them to a subsidiary free-of-charge in the form of a shareholder contribution were eligible for input VAT deduction. Facts The objects of business of W […]

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Inflation relief package parts II and III – government bills published

Following the approval of the first inflation relief package in the Austrian Parliament at the end of June (see our newsletter of 28 July 2022), the Austrian government published the government bills for the inflation relief package parts II and III on 14 September 2022. At the heart of the package – alongside other relief measures – […]

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VwGH – No provisions for impending losses due to lease expenses of loss-making stores

In a decision of 7 April 2022, Ro 2021/13/0009, the Austrian Supreme Administrative Court (VwGH) endorsed the case law of the German Federal Fiscal Court (BFH). According to this decision, provisions for impending losses arising from disadvantageous lease agreements can only be created if the leased property can no longer be used by the business. Circumstances […]

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Austrian Federal Tax Code (BAO) – Increase of Interest Rates

Due to the increase of the key ECB interest rate by 0.75%, changes to deferral interest, interest for suspension, claim interest (interest for subsequent payments and credits), appeal interest, as well as VAT interest have occurred. The European Central Bank raised its key interest rate with effect from 14 September 2022. Due to the automatic adjustment, […]

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Updated guidance on mutual agreement procedure and arbitration

On 5 May 2022, the Austrian Federal Ministry of Finance (“BMF”) published new guidance on mutual agreement procedure (“MAP”) and arbitration procedure (BMF – IV/8, Geschäftszahl 2022-0.300.851). The guidance replaces a BMF guidance from the year 2019 and provides an overview of the formal and material requirements for these procedures in Austria. Structure of the guidance […]

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Update: ‘Failed’ triangular transactions – Opinion of Advocate General Kokott on the preliminary ruling request by the VwGH regarding invoice details and invoice correction in a triangular transaction

As mentioned in our (German) newsletter of 21 May 2021, the Austrian Supreme Administrative Court (VwGH) submitted the following questions to the Court of Justice of the European Union (CJEU) regarding invoicing by the acquirer to the recipient in a triangular transaction: Is tax liability transferred to the recipient even if no reference is made in […]

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CJEU on cumulative intra-Community acquisitions

The CJEU has ruled (7.7.2022, C-696/20, Dyrektor Izby Skarbowej w W) that, in general, a cumulative intra-Community acquisition of goods can also occur in the Member State in which the transport began if the acquirer uses a VAT ID number of that Member State. However, there is no cumulative intra-Community acquisition of goods if the […]

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COVID-19 phased payment plans: Ordinance on phase 2 – evidence of ability to pay

The Austrian Minister of Finance has issued an Ordinance regarding the formal requirements for evidence of the ability to pay in connection with applications for phase°2 of the COVID-19 phased payment plan. The ordinance entered into force on 1 August 2022. To mitigate the financial impacts of the COVID-19 pandemic, the Austrian Federal Fiscal Code (BAO) […]

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Increase of interest rates in the Austrian Federal Tax Code (BAO)

Due to the increase of the key ECB interest rate by 0.5%, changes to deferral interest, interest for suspension, claim interest (interest for subsequent payments and credits), appeal interest, as well as VAT interest have occurred. The European Central Bank raised its key interest rate with effect from 27 July 2022. Due to the automatic adjustment, […]

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Inflation relief package(s) / new tax-exempt inflation bonus

The Austrian government has announced relief packages to mitigate the impacts on the population due to the huge wave of inflation. The first inflation relief package (part 1) was passed by the Austrian parliament at the end of June and was published in the Austrian Federal Law Gazette (BGBl.) on 30 June 2022. The package included […]

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