With resolution dated 7 October 2025, the Austrian Supreme Administrative Court (VwGH) submitted key interpretative questions regarding the simplification rule for triangular transactions to the ECJ. The focus is on whether an invoice correction related to failed triangular transactions is possible and whether the invoice correction has ex nunc effect. VwGH 7 October 2025, Ro […]
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On 23 October 2025, the ECJ has commented on the VAT treatment of supplies of tooling equipment with reference to the legal case Brose Prievidza C‑234/24. Underlying case The German automotive component manufacturer Brose Coburg acquired specific tooling equipment from the Bulgarian supplier IME Bulgaria for the manufacture of components and sold it to the […]
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Recently, the VwGH (4/9/2025, Ro 2023/13/0010) confirmed that the capital appreciation tax introduced with the Austrian Budget Accompanying Act 2011 (BBG 2011) “product-neutrally” includes all assets generating income in principle subject to section 27 para. 2 EStG in non-business contexts. Whether the respective asset actually generates income from the provision of capital assets or qualifies […]
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With its decision in the case SC Arcomet Towercranes(C-726/23) published on 4 September 2025, the ECJ takes a stance on VAT effects of transfer pricing adjustments (“TP adjustments”) for the first time. Description The SC Arcomet Towercranes SRL (subsidiary) is part of the Arcomet group. The Romanian subsidiary buys or rents cranes for selling or […]
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A few months ago, the BFG addressed in a decision (BFG 13/12/2024, RV/7100927/2020) the question of whether foreign exchange losses relating to dividend distributions from a shareholding, which is subject to the international participation exemption, are tax-deductible. Underlying case The decision was based on a case where an Austrian company held 90% of the shares […]
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On 7 March 2025 the BFG Vienna has ruled in two appeals (RV/7103283/2023 and RV/7102685/2022) that the prohibition on deduction of low-taxed intra-group interest and royalty payments (section 12 para. 1 subsec. 10 Austrian Corporate Income Tax Act (KStG)) is a violation of the EU’s freedom of establishment. An ordinary review of the ruling to […]
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Following up on recent case law from the tax court (BFG), in a different legal matter, the Austrian Administrative Supreme Court (VwGH) now also addressed the requirement to provide a certificate of residence on specific Austrian forms (ZS-QU1 or ZS-QU2) to benefit from a withholding tax relief at source in its decision dated 9 October […]
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In its ruling of 24 October 2024 (Ro 2022/16/0023-4), the VwGH clarified issues regarding the calculation of real estate transfer tax for industrial buildings using the lump sum approach (“Pauschalwertmodell”) as well as issues in connection with construction rights (“Baurecht”), i.e. the right to build and own a building/construction on a land whereby the latter is […]
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Recently, the Austrian Federal Tax Court (BFG) dealt in its decision (BFG 8/2/2024, RV/6100451/2018) with the requirements for the power of disposal triggering a permanent establishment. Fact pattern A German dentist treated inmates of Austrian prisons. The tax authority generally has a rather broad understanding of the power of disposal over a fixed place of […]
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The VwGH (27/03/2024, Ro 2023/13/0018) has largely confirmed ruling of the tax court at first instance and confirmed that the current law conflicts with CJEU case law and EU primary law (see our newsletter), but has solved the technical aspects of the income attribution in such a “sister” tax group differently. Facts and circumstances A […]
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