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Focus on Austria – Changes in the VAT legislation in 2020 and 2021

CHANGES PER JANUARY 1, 2020

Implementation of the EU VAT Quick Fixes

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Raising the small business limit 

The small business limit is increased from EUR 30,000 to EUR 35,000 annually and an obligation to submit a VAT return is adjusted accordingly.

Full liability for information obligations of online mediation platforms

The operators of online brokerage platforms in the area of ​​the “sharing economy” (eg rental platforms) are obliged to record information relevant to the levy of taxes on services that are processed through their platform and to transmit this to the financial administration. If the operator of the online placement platform does not sufficiently meet his recording obligations and the taxpayer (such as the landlord) does not meet his tax obligations, the operator of the online placement platform is liable for the loss of tax.

Reduced tax rates for e-publications and assistance dogs 

Electronic books, brochures and newspapers as well as audio books will be subject to a reduced tax rate of 10%. In addition, all assistance dogs within the meaning of the Federal Disabled Persons Act (and not just guide dogs) will be subject to a reduced tax rate of 10%, provided that they serve disabled people for personal use.

Digital tax law (DiStG 2020)

The digital tax is used to tax online advertising services of corporations in the field of the digital economy, which are aimed at users in Austria. Those online advertising masters who generate worldwide sales of at least 750 million euros per year are included in the tax. As an additional requirement, at least 25 million euros of digital advertising sales must be achieved in Austria each year. The tax is 5%, based on the remuneration that the online advertiser receives from the client.

Input tax deduction for e-bikes

For electric motorcycles – similar to electric cars – the possibility of deducting input tax is provided in the case of business use. In addition, in the case of private use by the employee, there will be no taxable benefits in kind.

The transfer of assets, or parts thereof, of agricultural and forestry businesses will no longer be regarded as taxable transactions for VAT purposes

The possibility of opting out of the special scheme for farmers according to section 22 of the VAT Act will be introduced with retroactive effect from the previous calendar year

The margin scheme will be applicable for the supply of art works subject to a number of conditions.

 

CHANGES PER JANUARY 1, 2021

Abolition of the tax exemption for deliveries of goods from third countries up to 22 euros

With the abolition of the currently applicable VAT exemption (up to 22 euros), VAT will be charged for deliveries from third countries regardless of the value of the goods. Entry into force: January 1, 2021 or earlier, provided the technical and organizational requirements are met

Online platforms become tax debtors for goods delivered from third countries

Provided that the value of the goods does not exceed 150 euros for deliveries from third countries to private customers, the operators of online platforms or online marketplaces, among others, will be considered as debtors of VAT and will pay them.

 

The application of the amended margin scheme for travel services has been postponed again until 1 January 2022.

 

Source BMF

Bill Austrian law

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