lower-vat-rate-on-accommodation-in-austria Lower VAT Rate on Accommodation in Austria




Lower VAT Rate on Accommodation in Austria

The value-added tax rate on accommodation will be reduced this year, according to a statement made by the Minister for Sustainability, Agriculture, and Tourism. This tax reduction aims to improve the tourism sector in Austria, one of the business sectors with the higher yearly revenue. Our team of lawyers in Austria talks about these tax changes and what investors in tourism can expect starting with 2018.

Lower VAT rates for suppliers of hotel accommodation in Austria

The Minister for Sustainability, Agriculture and Tourism, Elisabeth Kostinger, announced that the Government will reduce the value-added tax rate for accommodation services. The change is expected to enter into force starting with November 2018 and Austrian companies in the HORECA sector are believed to have enough time until that date to prepare for the upcoming change.
The hotel and accommodation sector in Austria was already included in the reduced VAT category, as it was subject to the reduced 13 percent VAT rate, instead of the usual 20 percent rate. According to the planned changes, the accommodation services will be included in the reduced 10 percent category. Our team of attorneys in Austria can give you additional information about the changes that will take place and how companies can adapt to these new tax law changes.

Value added tax rates in Austria

Value-added tax is levied on the provision of goods and services and the accommodation services as well as the related accommodation services in schools, youth center, and other such establishments were subject to the reduced 13 percent rate. Also included in this category were services related to animals and pet food, plants and seeds as well as wood, cultural services, the sale of wine and some categories of entrance fees. The further reduced rate of 10 percent applies to foodstuffs, agricultural products, pharmaceuticals, residential rent, public utilities (electricity not included) and others.
You can contact the tax experts at our law firm in Austria for more information on the obligations for VAT registration in the hotel and accommodation industry as well as other issues regarding taxation in the country.