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 […]

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COVID-19: Customs relief and VAT exemption on imports of goods to combat the ongoing coronavirus crisis

In Decision 2020/491 of 3 April 2020, the European Commission granted relief from import duties (incl. customs duties), and a VAT exemption on importation, for goods needed to combat the effects of the COVID-19 outbreak during 2020. Customs law (Council Regulation No. 1186/2009) and Council Directive 2009/132/EC envisage the possibility of relief from customs duties and exemption […]

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COVID-19: Austrian Alcohol Tax Act – tax-exempt alcohol for production of disinfectants

The Austrian Ministry of Finance has introduced simplifications in relation to the use of tax-exempt alcohol for the production of disinfectants. In addition to an application to the Customs Office, applications may also be made by email to the address corona@bmf.gv.at by 31 May 2020, in accordance with Austrian regulation BGBl II 121/2020. This includes applications for approval […]

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COVID-19: Austrian Tobacco Tax Act

The economic consequences of the COVID-19 outbreak mean that it is now undesirable to place additional burdens on consumers and businesses by increasing the tobacco tax. The changes in tobacco tax rates for cigarettes, fine-cut tobacco, and heated tobacco products, were set out in the Austrian Tax Reform Act 2020, BGBI. I Nr. 103/2019, and […]

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COVID-19: Consequences for customs

COVID-19 also has consequences for foreign trade. This entry was updated on 23 March 2020 and reflects the information currently available to us. Due to the worldwide crisis caused by the coronavirus SARS-CoV-2, the global demand for protective medical equipment has increased significantly. In this context, the European Commission has introduced an authorisation requirement for […]

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