Austrian Reduced VAT rate increase

Austrian Reduced VAT rate increase

As part of their 2016 budget Austria have proposed a reduced VAT rate hike raising it from 10% to 13% for the majority of supplies, this is expected to come into force on 1st January 2016, the list of supplies included in this VAT hike are:

Cultural events, including entrance to public museums and galleries

• Livestock and seeds
• Hotels (applies later in 2016)

Whilst staying at 10% will be:

• Supplies of food
• Pharmaceutical products

Austrian budget announces increased reduced rate

Austrian budget announces increased reduced rate

Austria has announced that it will increase its reduced rate of 10% to 13%. Most goods and services – including livestock, seeds, cultural services, museums, zoos and hotels – will see the rate go up to 13%, from the current 10%. However Pharmaceuticals and food will still be subject to the 10% rate, essentially meaning that they will have two reduced rates.

The changes will take effect from 1 January 2016; VAT on hotel accommodation will increase from either 1 April or 1 May 2016.

The change was announced in Austria’s 2016 budget, precise details of the Budget measures are not yet known, it is expected that certain anti-fraud measures will also be introduced; mandatory electronic cash registers for small businesses, as well as other unspecified measures to combat VAT fraud in general and specifically in the case of distance sales.

AT VAT – Austrian Reverse Charge VAT

For information on when to apply the reverse charge VAT in Austria,  Follow this link