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National digital tax decided

The implementation of a European digital tax was vigorously promoted by the Austrian Federal Government in the course of the Austrian EU Council presidency in 2018. Decisive progress was made, but rather than waiting any longer the Federal Government intends to act now to create a more just system. With the “Digital Taxation Package”, which was also adopted during the meeting, the Government is focussing on fairness in the taxation of the digital economy.

Three measures will in future ensure greater fairness in the taxation of the digital economy.

  • Digital corporate tax on online advertising: this will apply in regard to digital groups with international turnover of 750 million Euros and Austrian turnover of 10 million Euros. This will ensure that international groups which up to now have paid almost no tax in Austria will now have to pay tax.
  • Effective regulations regarding online trading from third countries: up to now, VAT has only been payable on packages from third countries if the value of the goods exceeds 22 Euros. However, many packages arriving in Austria (mainly from China) have false declarations attached to avoid payment of VAT. To protect Austrian traders, in future VAT will arise from the first cent.
  • Taxation and more stringent reporting requirements for online intermediary platforms: an obligation of disclosure will ensure that operators in the “sharing economy” will have to send information that is relevant to revenue collection to the tax authorities. Platform operators will be held liable if they fail to comply.  

 11 January 2019