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.
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