Reduction of the VAT rate to 5% in selected industries

To support the hospitality, cultural and publishing industries in Austria, which have been particularly affected by the COVID-19 crisis, a reduced VAT rate of 5% will be introduced for specific items for a limited period. The reduced rate will apply from 1 July 2020 until 31 December 2020. Hospitality (food and drink) Deviating from Section 10 Austrian VAT […]

read more

New investment premium as an incentive for companies

As announced by the Austrian government, the COVID-19 investment premium is intended to incentivise business investments and counteract the current reluctance of Austrian companies to invest. The government bill of the Austrian Investment Premium Act (InvPrG) contains the following main points: The premium will be provided for new investments (that must be capitalised) in fixed […]

read more

New: Mandatory electronic delivery of documents for businesses in Austria since 1 January 2020

Since 1 January 2019, businesses in Austria have been able to participate in a scheme for electronic delivery of official documents. Since 1 January 2020, all businesses (with limited exceptions) are now required to participate.[1] The background to this requirement is Section 1 of the Austrian E-Government Act (E-GovG), which entered into force on 1 January 2020. Under the […]

read more

COVID-19: Update on new support measures

On 4 April 2020, the Austrian Parliament passed three further legal COVID-19 packages (3rd, 4th and 5th Austrian COVID-19 Acts). These include new legal provisions, as well as clarifications and extensions of the previous COVID-19 Acts. This update provides an overview of the new legal packages in connection with COVID-19 support measures and represents the […]

read more

COVID-19: Guidelines on Subsidy for Fixed Costs published

On 25 May 2020, the Austrian Ministry of Finance published the guidelines on the fixed cost subsidy as part of the Corona Support Fund. The following update provides an overview of eligibility criteria and the application procedure from 20 May 2020. This article, originally published on 15 May, has been updated and represents the information available to […]

read more

Limitation of distributions and bonus payments due to COVID-19 subsidies

Since the beginning of the COVID-19 crisis, a recurring view in Austrian political discussions has been that companies should refrain from paying out dividends in the present situation, especially if they benefit from state support in connection with coronavirus (e.g. through the short-time working model). Others argue that a prohibition of distributions under company law […]

read more

VAT reduction for hospitality, cultural and publishing sectors

On 12 June 2020, the Austrian Minister of Finance announced a new supporting measure for the hospitality, tourism and cultural sectors. Accordingly, a reduced VAT rate of 5% will apply for supplies of all food and beverages in restaurants and other catering establishments, as well as for access to museums, cinemas or musical events and supplies […]

read more

Austrian Ministry of Finance on permanent establishment issues related to the COVID-19 pandemic

Due to the COVID-19 prevention measures, many employees have for several months been unable to carry out their activities at the location at which they would normally have worked before the pandemic. In cross-border circumstances, this can lead to undesired changes in taxation rights between states – for example, due to the creation of permanent […]

read more

COVID-19: Tax and social security consequences for expats

For individuals involved in cross-border activities – whether business travel, short-term or long-term assignments, or regular activities in multiple states – it is necessary to check whether the social security or tax situation will change if a greater proportion of activities are carried out from a home office. This article, originally published on 18 March, […]

read more

COVID-19: Support package for start-ups

In mid April, the Austrian federal government presented a COVID package for start-ups. The goal is to support Austrian start-ups that have run into financing and liquidity problems due to the COVID-19 crisis. The COVID start-up package comprises a support fund and a venture capital fund. This article (originally dated 20 April) represents the information […]

read more