Restaurants & pubs package amounts to €500 million

Targeted aid for catering establishments in Austria

Restaurants and pubs have been particularly hit by the coronavirus crisis. Not only have establishments had to remain closed for a very long time, but landlords will continue to feel the effects strongly for some time to come. The restaurants & pubs package makes available aid including tax relief, subsidies and incentives to increase consumption.

The measures in detail

The package includes a reduction of tax on non-alcoholic beverages in restaurants and pubs to 10% until the end of 2020. This corresponds to relief of around €200 million. Simplification and relief through higher lump sums were also announced. The lump sum upper limit will be increased from €255,000 to €400,000 annual turnover. By increasing the mobility lump sum from 2% to 4% in municipalities with up to 10,000 inhabitants, and to 6% in municipalities with up to 5,000 inhabitants, more money will be available for rural restaurants and pubs.

Further, the maximum limit for tax-free meal vouchers has been raised from €4.4 to €8 and the deductibility of business meals in inns increased from 50% to 75%, while tax on sparkling wine will be abolished from 1 July 2020.

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