Lockdown: Extension of compensation for lost revenues

Due to the Austrian COVID-19 Prevention Measures Ordinance, in place since the beginning of November 2020, certain sectors in Austria are again subject to restrictions. To provide those affected with support as quickly and directly as possible, the Austrian Federal Government has introduced compensation for revenues which were lost due to the lockdown as an immediate grant. We have already explained details in an earlier entry. Due to the recent tightening of the rules under the Austrian COVID-19 Emergency Measures Ordinance, guidelines were published on 23 November 2020 regarding the extension of compensation for lost revenues, which applies for those sectors affected between 17 November 2020 and 6 December 2020.

Below, we provide information on the key points regarding the extension of compensation for lost revenues due to the lockdown.

• Services involving close physical contact, e.g. hairdressers, will receive 80% of their revenues from the comparison period of November 2019.
• Commercial companies are divided into three groups, which will be reimbursed at 20%, 40% or 60% respectively. The following three criteria apply:
  • • Gross profit of the relevant sector with double weighting
    • Catch-up effects
    • Perishability and seasonality of the goods

The allocation into commercial sectors is based on the sectoral codes in the ÖNACE-2008 catalogue.

Application for compensation for lost revenues and the fixed costs subsidy II of up to EUR 800,000

When applying for compensation for lost revenues due to the lockdown for November 2020, it is not permissible to apply simultaneously for the fixed costs subsidy II of up to EUR 800,000 for the November assessment period.

However, if an application is made for compensation for lost revenues for only part of the assessment period, this part must be deducted for the fixed costs subsidy II of up to EUR 800,000.

In order to ensure the orderly processing of both subsidies, the application for compensation for lost revenues due to the lockdown must be submitted before the application for the fixed costs subsidy II of up to EUR 800,000.

According to the information available to us, additional guidelines are currently being prepared for indirectly affected sectors.

You can find further information via the following link: https://www.bmf.gv.at/public/informationen/informationen-coronavirus/infos-umsatzersatz.html#erweitert

Authors: Daniela Stastny, Alexandra Velic