Periodic VAT reduction to 5 % for restaurants, pubs, hotels, culture, media and other companies in Austria.

LBG Austria - Summary: The National Council decided to reduce the VAT to 5%, with a time limit from July 1, 2020 to December 31, 2020 for certain services in selected industries. This includes gastronomy, restaurants, Almausschank, Buschenschank, shelters and, under certain conditions, the catering operations of bakeries, pastry shops and butchers. Hotels stays and similar accommodation services, including private room rentals and camping are also included in the temporary tax relief. This also applies to cultural establishments, cinemas, theaters, music events, publications, works of art, museums, nature parks, zoos, circuses and the performance of showmen. The necessary organizational implementation (e.g. consideration in electronic cash registers and merchandise management or invoicing systems, issuing of receipts, adjustments in finance and accounting, consideration in the advance sales tax return) is necessary both in the event of a reduction in VAT on 1.7.2020 and then again on return at the higher VAT rate on 1.1.2021.

July 1st, 2020 I LBG I Heinz Harb

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