In September 2019, the lower house of the parliament (Nationalrat) approved the draft bill which contained several proposals for amendments to the Austrian VAT law that is due to come into force in 2020.

The main proposals relating to Austrian VAT (USt/MwSt) include:

  • The implementation into legislation of the EU’s Four VAT ‘Quick Fixes’
  • A reclassification of the VAT rate for electronic publications.
  • An increase of the VAT threshold for the small businesses scheme.

It is expected that the upper house will approve these rules shortly.

EU Four VAT ‘Quick Fixes’

The ‘Quick Fixes’ aim to provide clarity, guidance and VAT treatment simplifications which apply when EU supplies of goods take place.  So the ‘Quick Fixes’ include:

  • Simplification for call-off stock arrangements;
  • Uniform criteria to simplify the VAT rules on ‘chain transactions’;
  • Substantive conditions which add the need to obtain and report a valid VAT identification number to exempt B2B intra-EU movements of goods; and
  • A framework for documentary evidence to support the intra-EU movement of goods.

Find out more with our ‘Quick Guide to the Quick Fixes’ webinar recording here.

E-Books and Publications

The Austrian government propose to follow in the footsteps of many other EU Member States by aligning the Austrian VAT rate of E-books and publications with their printed counterparts. Currently these are taxed at the reduced rate of VAT of 10%.

In order to qualify for the reduced rate, electronic publications would need to be similar to traditional print publications.

VAT Threshold

The final amendment proposed is to increase the VAT threshold for the application of the scheme for small businesses from EUR 30,000 to EUR 35,000. This scheme applies only to small domestic entrepreneurs established in the territory.

If any of the above changes affect your business, please contact our VAT experts to find out how we can assist you.

By |November 5th, 2019|