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Appeals against full taxation of foreign capital gains

The Provincial Finance Directorate for Vienna, Lower Austria, and Burgenland has, in an appeal decision, recognised the full taxation of foreign capital gains as contrary to EU law and granted the appeal. The decision of the Supreme Administrative Court (VwGH) on the presidential complaint lodged is still pending. It is highly probable that the VwGH will confirm the incompatibility with EU law of the current full taxation. Therefore, legal remedies should be filed against such notices or ongoing legal remedies should be continued.

Tax qualification of externally financed pension insurance policies

Contracts of this type concluded after 31 July 2002 are considered an investment for which the primary aim is to derive tax advantages, according to Decree BMF of 10 August 2001. Losses from such investments can therefore only be offset against later profits.

VAT identification number as part of domestic invoices

Due to the second amendment to the law on deliveries and services 2002, the VAT identification number must also be stated on domestic invoices, namely:

Ab 1 October 2002 on subcontractor invoices to the main contractor in the Construction industry, with the general contractor becoming liable for VAT. It should be stated Unique Identification Number. is Recipients of benefits, whereby no VAT is to be shown on the invoice and reference must be made to the transfer of the tax liability. From 1 January 2003 on all invoices eligible for input tax deduction. To be stated is the Provider's UID number. The allocation of UID numbers will be handled automatically by the tax office later this year.
Further details on this will follow in the client information of December 2002.

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