VAT deduction and self-consumption for tax purposes do not have to take place in the same country

A very popular „Sales tax savings model“The VwGH (GZ 2011/15/0176 of 22.5.2014) has now imposed a bar on this. Smart entrepreneurs tried car as much as possible tax optimization their Make it available to employees. This should work in such a way that one Input VAT deduction from the Purchase or the Leasing of the passenger car claimed will be used during the Assignment to the employee no tax-related Self-consumption taxed will be. Since the car Also Used privately which can be done is a Benefit in kind for the Servants to be set, which is Income tax assessment basis at the employer increased.

In the case before the VwGH, an Austrian entrepreneur had in Germany, cars rented and his in Austria act Employees surrendered. The Input VAT for the Leasing business was determined by the German financial administration as part of the remuneration procedure returned to the entrepreneur. However, there was no self-consumption tax in Austria, because According to the entrepreneur no VAT applied in Austria was done and thus No need one Consumption tax is present.

This View shared The Supreme Administrative Court however Not. In the case of items that are used both commercially and privately, there is a Right to choose affiliation. The entrepreneur can decide whether or not he/she Item dem Corporate assets assign whether you want to or not. There in Germany die Full pre-tax from the tax office requested back The entrepreneur wanted the corresponding car to 100% in Corporate assets is located. Will now be a Item, the to the company's assets belongs and for the Input VAT valid was done, used for private purposes, That's how it is Consumption tax The VwGH follows the line here of the European Court of Justice, referring to the VAT Directive wants to prevent the non-taxation of an enterprise asset used for private purposes (Rs. C-155/01 of 11.9.2003). Building on this, the VwGH came to the conclusion that an Consumption tax always then take place Must, if Tax deducted from income This means that, regardless of whether it took place in the same country or not, in the specific case a foreign withholding tax deduction in Austria is sufficient for the Taxation of self-consumption as a fictitious service (due to the provision of the cars to the employees).

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