Austria Introduces Bill to Extend Existing Measures During COVID-19 Pandemic

Russell Hughes
January 29, 2021

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.

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Russell Hughes

At Sovos, Russell works within the Consulting team providing UK and cross-border supply advice, detailed reviews on existing and new business activities and practical solutions to clients’ businesses. Prior to joining Sovos, Russell was the VAT manager of an award-winning tax team based in a firm of Chartered Accountants in the South East of England. Having initially begun his career in audit and accounts, he specialized in VAT in 2011, where he gained significant experience in cross-border issues, imports and exports, land and property, group registrations, partial exemption, HMRC enquiries and other complex VAT transactions. From June 2015, Russell was the sole VAT specialist in his previous company, where he led the firm’s VAT compliance and consultancy projects including all day-to-day VAT queries. Russell is also a member of the VAT Practitioners Group (VPG).
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