Austrian reduced VAT rates 10% and 13% applying from 2016

We would like to inform you that as of 1 January 2016 there will beside the reduced rate of 10% be an additional reduced rate of 13% in Austria, whereas the reduced 12% rate will be abolished. Therefore, please find below a brief (not exhaustive) summary of the amendment as well as the dates when the changes will come into force.

10% reduced rate will be applicable for the following transactions:

  • Supply and import of goods listed in annex 1 to the Austrian VAT Act.
  • Supply of food and beverages listed in annex 1 to the Austrian VAT Act in the course of a service (restaurant).
  • Breakfast (if customary in a place) in connection with accommodation.
  • The rental of items listed in annex 1 no. 33 to the Austrian VAT Act and the rental of property for residential purposes (except for the supply of heat as ancillary service).
  • Services of an association of individuals for the management, maintenance, etc. of their condominium which is used for residential purposes (except the supply of heat as ancillary service).
  • Services provided by corporations, associations of individuals and estates, that serve common interest, charitable or church purposes, if not covered by a tax exemption; services according to Sec. 7 (1)-(3) of common interest home-building associations according to the Austrian “Wohnungsgemeinnützigkeitsgesetz”. However, the reduced rate does not apply for several services.
  • Services carried out by broadcasting companies as far as payments have to be done to the respective companies (not only public service broadcasting companies).
  • Passenger transportation in case the transactions are not VAT exempt or subject to the VAT rate of 13%.
  • Services which are linked to waste disposal.
  • Services of health institutions, retirement homes, homes for the blind, etc., as far as the services are directly linked to the medical treatment or care of the elderly and in case no VAT exemption applies.

13% reduced rate will apply for the following transactions:

  • Supply and import of the goods listed in annex 2 no 1 to 9 to the Austrian VAT Act (an exact classification is possible by knowing the Taric Code of the respective good), e.g.:
    – Live animals;
    – Bulbs, tubers, tuberous roots, etc. dormant, in growth or in flower;
    – Other live plants (including their roots), cuttings and slips; mushroom spawn;
    – Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh;
    – Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, of a kind suitable for bouquets or for ornamental purposes, if they are fresh;
    – Seed;
    – Litter of the food sector, animal feed as well as firewood .
  • Import of (and under certain circumstances the supply of) various artifacts listed in annex 2.
  • Import of Postage or revenue stamps, stamp-postmarks, first-day covers, postal stationery, stamped paper and the like, used, or if unused, not of current or new issue in which they have, or will have, a recognized face value.
  • Import of Collections and collector’s pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest.
  • Import of more than 100 years old antiques.
  • Breeding of animals as listed in annex 2 to the Austrian VAT Act and breeding of plants.
  • Specific services in connection with livestock breeding.
  • Accommodation in the hotel sector (living rooms and bedrooms) and regularly related ancillary services (including heat).
  • Rental of land for camping purposes and the regularly related ancillary services if included in the consideration.
  • Turnover from activity as an artist.
  • Revenue from running a swimming or thermal baths.
  • Following services if the they are not VAT exempt:
    – Theater;
    – Concert (vocalist, etc.), orchestra, chorus, etc ;
    – Museums, botanic or zoological garden.
  • Cinema shows.
  • Circus performances and showman performances.
  • Domestic passenger air transport services in case there is no VAT exemption.
  • Services regarding the youth center, recreation center and educational center to people who have not yet reached the age of 27 as far as those services include the care, supervision, lodging, feeding and other general ancillaries and in case there is no VAT exemption.
  • Wine-selling direct from the farm; except delivery of beverages made out of purchased substances and delivery within the operating rooms (e.g. in a wine tavern).
  • Admission fees for sport events.
  • An exact classification of the applicable tax rate can be made by evaluation of the respective Taric Code.

Entry into force.

Most of the changes concerning the reduced rate of 13% will take effect as of 1 January 2016. However, the reduced 13%VAT rate for accommodation, theatre, concerts, opera, and museums, zoological gardens, and nature parks will take effect as of 1 May 2016 and applies for services carried out after 30 April 2016. Furthermore, there is a special rule for the period between 1 May 2016 and 31 December 2017 for the before-mentioned transactions (i.e. accommodation, theater, etc.). In case the booking as well as a pre-payment was made before 1 September 2015 the 10% reduced rate will still apply for the period 1 May 2016 to 31 December 2017.

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Jutta Schmidt

Jutta Schmidt

Manager | Deloitte Tax | Telefon: +43 1 537 00 4952 | E-Mail senden

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