On April 28, 2020 the National Council adopted thirteen additional COVID-19-Acts. The 18th COVID-19-Act contains several tax measures as well as clarifications in connection with the already implemented 3rd COVID-19-Act. Below you will find a brief overview through the relevant tax measures of the recently adopted COVID-19 legislative.
Reduction of the VAT-rate for protective masks.
The VAT-rate for deliveries and intra-community acquisitions of protective masks that were executed between April 14, 2020 and July 30, 2020, has been reduced to 0%. The reduced VAT-rate applies retroactively for deliveries and intra-community acquisitions after April 13, 2020. As regards the tax return the Federal Ministry of Finance announced an extension of the code 015 and 071 of the form U30. The deliveries (015) and intra-community acquisitions (071) of protective masks will have to be declared under these codes. The extended form is supposed to be available from May 7, 2020 via FinanzOnline. The revenues from sales of protective masks will thereby be included under the genuine tax exemptions. Therefore, the VAT-deduction on corresponding input will not be restricted.
Tax exemption for travel expense allowance lump sum in connection with sports clubs.
The tax exemption for the travel expense allowances lump sum granted by non-profit sports clubs to their athletes, umpires and sport tutors (i.e. coaches, massagers, etc.) remains applicable under certain conditions. If during 2020 days of service are cancelled due to COVID-19, and the lump sum for travel expense allowances is being granted anyway, the regular tax exemption for these allowances up to EUR 60 per day of service but maximum EUR 540 per month of service is still applicable.
Half tax rate for termination of medical practices.
The 3rd COVID-19-Act determined that the tax relief will remain unaffected by income that is obtained by retired doctors due to the COVID-19-pandemic in 2020. The 18th COVID-19-Act now contains a clarification that this only applies to income, which has been generated by activities performed in Austria. Therefore, the half tax rate remains applicable for retired doctors who are (again) practicing in Austria during corona-crisis.
Unabridged repayment of credit balance despite current tax payments facilities.
With the 18th COVID-19-Act the possibility to apply for unabridged repayments of tax credit balances, it has already been applied for tax payment facilities (via FinanzOnline) for outstanding tax-debt or the payment facilities have already been granted, has been implemented. The application for repayment has to be filed via FinanzOnline within one month of the notification that causes the credit or in case of self-assessed-taxes simultaneously with the declaration of the taxes. In connection with credits regarding premiums, compensations and refunds, the application for repayment has to be filed simultaneously with the corresponding application.
These measures apply for credits arising from notifications later than May 10, 2020 or in case of self-assessed-taxes for declarations later than May 10, 2020 and are applicable until September 30, 2020. Credits arising from import VAT are excluded from the above-mentioned regulations.
With the 18th COVID-19-Act further important tax measures in connection with the corona-crisis, especially in the area of VAT and tax procedure law, will be incorporated into the law. If you have any questions, please do not hesitate to contact your Deloitte advisor.
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