Temporary reduction of the value added tax-rate

The value added tax-rate (VAT-rate) is temporarily reduced to 5 % for certain supplies and services

Key Facts

Introduction of a temporary reduced VAT rate of 5% for gastronomy, lodging industry, cultural and publishing sector.

In gastronomy, this reduced rate is applicable to the supply of food and drink.

In the lodging industry, the reduced VAT-rate applies for accomodation services and camping.

In the cultural sector, for example, the reduction in VAT includes visits to museums, cinemas, zoos or music events.

The reduced rate of 5% also applies for the purchase of newspapers and other periodicals and books (no matter if electronic or physical publications)

Autor

Mag. Elisabeth Kendler

Geschäftsführerin

Steuerberaterin

WTS (Wien)

zum Profil

In the "fight" against the COVID-19-crisis, the Austrian government has decided on further support measures for particularly affected industries. One of the measures includes a temporary reduction of VAT to 5% for certain sectors.

Already implemented is the temporarily reduction of the value added tax-rate (VAT-rate) to 0% for deliveries and intra-community acquisitions of protective masks made after the 13th of April 2020 until the 1st of August 2020.

On the 30th of June the Austrian national council decided to amend the law, which provides a reduction of the VAT-rate to 5% for certain supplies and services for the period from 1st of July 2020 to 31st of December 2020. Compared to the draft, the Austrian national council extended the scope of the measures.

The affected industrial sectors are the gastronomy, the lodging industry, the cultural and the publishing sector.

The reduction of the VAT-rate to 5% is for every kind of food and beverage in restaurants and also includes accomodation services; it applies for books, brochures, magazines, newspapers and other periodicals, and also for electronic publications such as ebooks etc. Examples for the reduced VAT-rate in the cultural industry are tickets for theatre, music and singing performances, museums, zoos, botanical and zoological gardens, nature parks and cinemas. This reduction shall also apply to transactions relating to the activities of artists and the supply of art objects (if the copyright owner or his successor in title supplies) and it is also going to be valid for the import and intra-community acquisition in these industries.

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