The Quick Fixes were only the beginning. There are many tax-related changes, new laws and regulations introduced at the moment throughout Europe and therefore, naturally also in Austria. We collected the most relevant announcements for now.
Maximilian GamplLast Updated on
Raising the small business limit
Small business can get a VAT exemption below an annual limit of € 35,000 since the beginning of this year. Before 2020, the limit was € 30,000. This, like many other aspects of the current European tax reforms, shall support small businesses.
Digital tax law (DiStG 2020)
The digital tax is used to tax online advertising services provided by corporations in the digital economy which are aimed at users in Austria.
Online advertising providers with a worldwide turnover of at least € 750 million per year are taxed. As an additional requirement, at least € 25 million in digital advertising revenues per year must be generated in Austria. The tax is 5%, calculated on the payment that the online advertising provider receives from the client.
Compulsory EU reporting law (EU-Meldepflichtgesetz)
As of 1 July 2020, there will be an obligation to report certain cross-border tax arrangements to the Austrian tax authorities.
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The reporting obligation applies to structures that involve at least two EU Member States or one EU Member State and a third country and indicate a risk of tax avoidance, circumvention of the Common Reporting Standard Act or prevention of identification of the owner.
Abolition of the tax exemption for deliveries from Non-EU countries
By the beginning of 2021, the current € 22 limit for VAT exemption is not existent anymore. That means that VAT will be charged for delivered goods from third countries regardless of their value.
Online platforms become tax debtors
If the value of goods does not exceed 150 euros for deliveries from non-EU countries to private customers, the operators of the online platforms, among others, will be subject to VAT by 2021.
Reduction of the corporate tax rates
A decrease of the corporate tax rates is planned. It was announced to reduce it from 25% to 23% in 2022 and to 21% in 2023.
The chancellor of Austria also announced that the personal income tax rates shall be lowered as well.