The Austrian government has introduced a new bill to extend tax measures to support taxpayers during the Covid-19 pandemic.
The VAT measures include the following:
- The temporary application of a reduced VAT rate of 5% in the gastronomy, culture and publishing sectors extended until 31 December 2021
- Introduction of a VAT exemption for COVID-19 in vitro diagnostics and vaccines until the end of 2022
- Application of the reduced VAT rate of 10% for repair services relating to bicycles, shoes, leather goods and clothing as from 1 January 2021
- Previously granted deferral of taxes and waivers of late interest penalties extended until 31 March 2021
- Necessary adjustments to the Austrian VAT Act to reflect the consequences of Brexit after 31 December 2020
The new bill was approved by approved by the Federal Council on 21 December 2020 and published in the Official Gazette on 7 January 2021.