Gastronomy and culture sector: VAT reduced to 5%
Finance Minister Blümel: reduced VAT rate introduced to support the gastronomy, culture and publishing sectors.
“We in the coalition have decided to take further action to combat the effects of the coronavirus crisis in the medium and long term. We are working on a credit moratorium for particularly affected sectors. The idea is that the state will make advance payments on credit instalments so that companies continue to have sufficient liquidity. Additionally, the fixed costs subsidy is going to be adapted, both in terms of its criteria and duration, to provide ongoing support for particularly affected sectors”, said Finance Minister Gernot Blümel at today’s press conference on further support measures for the catering, tourism and culture sectors. A reduced value-added tax rate of 5% will also be introduced, and will apply, for example, to food and drinks in catering establishments, visits to museums, cinemas or music events, and to newspapers and other periodicals and books. This tax reduction will apply from 1 July 2020 to 31 December 2020. “It is encouraging to see the economy slowly getting back on track. At the same time, in some sectors, the new start is proving hesitant and uncertain. Together with the European community, we are currently working on a temporary exception for these sectors. In this exceptional situation, it must be possible to provide special short-term assistance to particularly affected sectors”, continued Finance Minister Blümel.
Tax deferrals extended until 15 January 2021
Businesses will additionally be supported by an automatic extension of tax deferrals. “We can see that the economic effects of the coronavirus crisis will be with us for some time to come. We are providing relief to businesses by postponing tax payments beyond 2020, until 15 January 2021”, said Finance Minister Blümel. The tax deferral extension will be fixed by law and made possible by a change in the Austrian Federal Tax Code. This will save those liable to pay tax from having to file a new application, and tax offices from having to issue a new assessment notice.