Austrian budget announces increased reduced rate

Austrian budget announces increased reduced rate

Austria has announced that it will increase its reduced rate of 10% to 13%. Most goods and services – including livestock, seeds, cultural services, museums, zoos and hotels – will see the rate go up to 13%, from the current 10%. However Pharmaceuticals and food will still be subject to the 10% rate, essentially meaning that they will have two reduced rates.

The changes will take effect from 1 January 2016; VAT on hotel accommodation will increase from either 1 April or 1 May 2016.

The change was announced in Austria’s 2016 budget, precise details of the Budget measures are not yet known, it is expected that certain anti-fraud measures will also be introduced; mandatory electronic cash registers for small businesses, as well as other unspecified measures to combat VAT fraud in general and specifically in the case of distance sales.