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Tax court rules on VAT treatment of roaming services provided by foreign companies

BFG reaffirmed that the telecommunications services are subject to Austrian VAT only if they are not subject to a comparable tax in the non-EU country. The court also stated that a 10% foreign tax does not constitute a comparable tax, while a 14% tax is considered comparable. The Austrian tax authorities, however, now appear to take the view that a tax must be at least 15% (the minimum standard VAT rate under the EU VAT directive) to be considered comparable and have appealed the court’s decision to Austria’s Supreme Administrative Court.

Source: Deloitte