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Ministry of Finance enables tax-free production of disinfectants

The current corona crisis has led to disinfectants running out in Austria.

Due to increased demand for hand disinfectants, the Federal Ministry of Finance is making it possible to use tax-free alcohol for the production of disinfectants, in order to simplify production. The possibility of a tax refund for already taxed alcohol is being discussed. In doing so, the Ministry of Finance is following the recommendation of the World Health Organization (WHO) to switch to local production of alcohol-based hand rubs (ABHs) – for example, in pharmacies – if problems arise with the availability of industrially produced hand disinfectants.

In view of the urgency and exceptional situation, the administrative procedure for the tax-free production of disinfectants has been made less bureaucratic. For example, holders of certain alcohol-tax permits (e.g. Pharmacies, bioethanol producers, detergent manufacturers, etc.) are entitled to carry out denaturation for the production of disinfectants themselves without being answerable to customs authorities in the period from 1 February 2020 to 31 August 2020.