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
