- Penalties for early termination or non-payment of an online entertainment service contract are considered taxable remuneration.
- Such penalties do not qualify as nontaxable damage compensation under Sec 1 para 1 no 1 Austrian VAT Act.
- This interpretation was confirmed by the Supreme Administrative Court on 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.
