Austria: 5% Digital Tax

This announcement includes a 5% tax on revenue derived from the sale of digital advertising services and the removal of the low-value VAT exemption threshold.

According to the Ministry of Finance’s announcement, the digital tax will apply to companies with global sales of at least €750m (USD842m) and with digital advertising sales in Austria of €25m or more. €15m of the revenue collected from the digital tax has been earmarked for a “digitalization fund” intended to support Austrian media companies through the digital transformation process.

Also, from 2020, digital platforms will assume full liability for tax disclosure obligations. In practice, this will mean that booking platforms will be required to report all sales to the tax authority.

Get our monthly VAT guide to ensure you never miss another VAT update!