Sales Tax Law Amendment 2004 - Prompt Response to the ECJ Judgment of May 8, 2003

In the client newsletter 2/2004, the favorable tax consequences of the EU Court of Justice judgment "Seeling" for Austria were reported, but a expected change was already announced. This has now been implemented. Effect from May 1, 2004:

1. Exclusion from Input VAT deduction one operational building for the portion not used for entrepreneurial purposes.
   
2. No self-consumption tax for this building share.
   
3. Extension des Correction period 19 years (1/20 of the amount of the tax) for buildings that do not serve exclusively for entrepreneurial purposes and in which taxes have been claimed for the part that is not used for entrepreneurial purposes. In all other cases, the correction remains at 1/10.
   
4. Extension The Duty to store for documents from 10 to 22 years for buildings according to Point 3.

Conclusion:
With this amendment, the problem created by the judgment of the European Court of Justice was addressed; the new regulation essentially corresponds to the existing legal situation. No pre-tax deduction, no self-consumption, but pre-tax adjustment in the event of a change in use.

Image: © Eisenhans - Fotolia