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Austria: VAT Changes with Effect from 01 January 2020

By Edith Huber-Wurzinger, Gaedke & Angeringer Steuerberatung GmbH

The Austrian tax reform for 2020 necessitated some organisational modifications and implementations within the scope of the IT systems for many entrepreneurs. The new provisions are especially important for the transnational movement of goods in the internal market.

Due to the harmonisation and simplification of taxation within the EU, these so called “quick fixes” have been applied:

  • New rule for chain transactions: The movement of the goods is ascribed to the supply made to the intermediary operator (IO). However, if the IO provides the supplier with a VAT ID of the Member State of departure, the movement of the goods will be ascribed to the supply made by the IO.
  • Simplification rule for call-off stocks: The (zero-rated) intracommunity supply of goods and the intra-community acquisition of goods take place at the time the acquirer takes ownership of the goods and not at the time the goods are transported to the stock in another member state.
  • VAT exemption of intra-community supplies of goods: The receiver of the goods must indicate the VAT ID to the supplier. The supplier has to show the supply correctly in the recapitulative statement. If one of these obligations is not fulfilled, the VAT exemption will not apply.
  • The provisions on proof of transportation for intra-community supplies of goods have been harmonised by the EU member states. However, the Austrian rules laid down in an Austrian directive can still be used.

Furthermore, there have also been the following changes:

  • The threshold for the exemption for small businesses has increased to EUR 35.000 per annum.
  • The supply of electronic books and newspapers is subject to a reduced rate of 10% the same as for printed works.
  • Supplies of goods or services in connection with electronic motorcycles, such as e-bikes and e-scooters, entitle businesses to deduct input VAT. The decisive factor is carbon dioxide emissions of 0 g/km. The input VAT for e-cars had already been deductible while the input VAT for other passenger cars is not deductible in Austria.

Please note: This article only provides a brief overview of the changes. For detailed information and specific advice for the situation of your company, please contact the author or any other Austrian tax adviser.

Edith Huber-Wurzinger

Edith Huber-Wurzinger

GGI member firm
Gaedke & Angeringer Steuerberatung GmbH
Advisory, Auditing & Accounting, Tax
Graz, Austria
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Gaedke & Angeringer Steuerberatung GmbH in Graz, Austria, offers professional support on all issues pertaining to taxation, accounting, business management, social security, and labour law and uses stateof- the-art technology and a strong base of knowledge to advise clients of every legal structure and from all economic sectors.

Edith Huber-Wurzinger is an Austrian certified tax consultant. Her focus is in the field of indirect taxes and international taxation. She is a member of the VAT working group of the Expert Committee for Tax Law of the Austrian Chamber of Tax Advisors and Auditors, and a specialist author and lecturer.

Published: Indirect Taxes Newsletter, No. 10 Spring 2020 l Photo: phpetrunina14 - stock.adobe.com

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