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Austria introduces coronavirus VAT measures

  • Nov 29, 2020 | Richard Asquith

29 Nov - the reduction in VAT rate on restaurants, admission to cultural events and publishing to 5% is being extended until Dec 2021; a VAT payment deferral until 31 March 2021 is to be made available.

12 Jun - the Austrian government has announced today that it is cutting VAT on resturants and cinemas to 5%.

15 May - the cash-based VAT regime threshold is being increased from €255,000 to €400,000 per annum.

11 May update - reclassifying VAT on non-alcholic drinks from standard VAT rate of 20% to reduced rate of 10%. Many other catering services and take away food is already at 10%.

27 Mar Update: the due date for the Austrian annual VAT return has been extended from 30 June to 31 August.

Austria’s Bundesminiterium Finanzen Ministry of Finance (BMF) had already published details of VAT and other tax relief measures to help businesses experiencing difficulties due to the coronavirus pandemic. Follow Avalara’s live  global coronavirus Covid-19 VAT measures tracker.

This includes costs incurred in complying with emergency health regulations. These include, for example, exceptionally high cancellations of hotel reservations, loss of sporting and cultural events due to official prohibitions, failure or impairment of supply chains or loss of earnings due to changes in consumer behaviour.

Monthly VAT payers may apply to their respective tax office for a postponement and instalment payment plan. This includes a waiver or renegotiation of penalty and interest payments on late settlement. If no permission is granted, businesses will be given one week’s extension automatically. 

VAT audits will not go ahead for any business which can demonstrate issues related to the crisis.

Explore more content like this in our Building for COVID-19 recovery hub

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Researching Austrian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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