Press Release: VAT – Commission pursues infringement proceedings against Austria on the exclusion of the right to deduct input tax with regard to construction costs for mixed use buildings

The European Commission formally requested Austria to change its VAT legislation as regards the exclusion of the right to deduct VAT on building costs for properties attributed to assets of a business that are partially used for private purposes. The request took the form of a reasoned opinion (second step of the infringement procedure provided for in article 226 of the EC Treaty). If the relevant national legislation is not amended to comply with the reasoned opinion, the Commission may decide to refer the matter to the European Court of Justice.