The Austrian Federal Ministry of Finance clarified the input VAT deduction rules for commercial vehicle leasing in a Federal Finance Court decision. The ruling states that input VAT can only be deducted when the rental activity is a clear, objectively verifiable commercial operation, not merely asset management, and that leasing to related companies alone does not qualify. The decision applies to intra‑community vehicle purchases and impacts companies claiming VAT on passenger cars used for group leasing.
The court ruled that input VAT can only be deducted when the rental activity is a clear, objectively verifiable commercial operation, not merely asset management, and leasing to related companies alone does not qualify.
The ruling is Federal Finance Court Decision No. RV/3100678/2025.
Yes, the decision applies to intra‑community purchases of passenger cars used for commercial leasing within a group.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
Bloomberg Tax · 19 days ago
Austria’s Official Gazette issued Ordinance No. 19 on 28 January 2026, revising the list of gold coins exempt from VAT. The new rule removes VAT exemption for coins with purity below 90 %. The ordinance updates the legal framework for collectors and dealers of gold coins.
Global VAT Compliance · 23 days ago
Austria has lowered its reduced VAT rate from 10% to 5% for a defined basket of goods, effective 1 July 2026. The change applies only to specified goods and does not affect the standard rate.
ESM Magazine · about 1 month ago
Austria will permanently cut the VAT on basic food items from 10% to 5% effective mid‑2026, a 50% reduction that the Austrian National Bank estimates will lower inflation by 0.5 percentage points one‑off. The move, welcomed by the Austrian Retail Association, is intended to provide lasting relief to consumers and is expected to be passed on by retailers where possible.
Just Food · about 1 month ago
Austria will reduce the VAT on certain food items from 10% to 5% mid‑2026, a measure financed by a new tax on non‑recyclable plastics. The specific foodstuffs eligible for the discount are yet to be defined, and the competition authority will enforce the reduction and ensure retailers pass the benefit to consumers.
VatCalc · about 1 month ago
The Austrian government will cut the VAT rate on a basket of essential food items from 10% to 5% starting 1 July 2026, a move aimed at easing inflationary pressures. The measure was confirmed on 14 January 2026 and will be counter‑financed by fees on imported parcels from third‑country suppliers such as China.
MarketScreener · about 1 month ago
The Austrian government announced that it will halve the VAT rate on essential food items as part of its fiscal policy. The change is expected to provide relief to consumers on basic groceries. No further details on the effective date or specific rates were disclosed in the article.
