Insights
VAT
Receipt of invoice not a prerequisite for input tax deduction
The Court of Justice of the European Union (EuG) ruled that provisions which postpone input tax deduction solely because an invoice is received late are unlawful, provided the invoice is available at the latest when the tax return is filed.
In Austria, input tax deduction is only permitted in the tax period in which both conditions, namely receipt of the service and invoicing, are fulfilled. However, following the EuG decision, a trader could already claim the input tax deduction in the filing period of the service receipt, provided the proper invoice is available at the latest when the VAT advance return for that period is submitted, as the following example shows:
A trader receives services in January 2026 but does not receive the proper invoice until February 2026. If the VAT advance return for January 2026 is submitted on time on 15 March 2026, the EuG’s view would allow the input tax deduction to be claimed already in the advance return for January 2026, even though the invoice arrived in February.
The EuG decision is not yet final, as a review procedure before the Court of Justice of the European Union (EuGH) is pending. The EuGH does not have to follow the EuG’s legal interpretation and may adopt a different view. The final clarification by the EuGH therefore remains to be seen.
A trader receives services in January 2026 but does not receive the proper invoice until February 2026. If the VAT advance return for January 2026 is submitted on time on 15 March 2026, the EuG’s view would allow the input tax deduction to be claimed already in the advance return for January 2026, even though the invoice arrived in February.
The EuG decision is not yet final, as a review procedure before the Court of Justice of the European Union (EuGH) is pending. The EuGH does not have to follow the EuG’s legal interpretation and may adopt a different view. The final clarification by the EuGH therefore remains to be seen.