- Payments due to early termination of ongoing service contracts or due to late payment are subject to VAT.
- These payments are considered remuneration for the provision of services under the contract.
- This applies specifically to online entertainment services.
- Based on the decision of the Austrian Supreme Administrative Court (VwGH) dated 11.11.2025, Ro 2025/13/0018.
Source: leitnerleitner.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
