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

The main proposal relating to VAT, include the implementation into legislation of the EU’s four ‘Quick Fixes’ for VAT. Additionally, it includes a reclassification of the VAT rate for electronic publications; and to increase the VAT threshold for the scheme for small business.

EU’s ‘Quick Fixes’

The ‘Quick Fixes’ aim to provide clarity, guidance and some simplifications to VAT treatment that should apply when EU supplies of goods take place.  The quick fixes include:

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

You can see our ‘Quick Guide to the Quick Fixes’ by signing up to our webinar here.

E-Books and publications

The Austrian government also propose, following in the footsteps of other Member States, to align the VAT rates of e-books and publications with their printed counterparts. The latter are taxed at the reduced rate of VAT of 10%.

To qualify for the reduced rate, the electronic publications would need to be similar to traditional print publications

VAT Threshold

The final amendment  proposed is to increase of 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.

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

By |November 24th, 2019|