The Austrian Ministry of Finance issued guidance on the interaction between the EU Carbon Border Adjustment Mechanism (CBAM) and import VAT (Einfuhrumsatzsteuer). The key clarification: the cost of CBAM certificates acquired by importers does not form part of the customs value for import VAT purposes. Instead, the VAT base remains the customs value plus duties and other charges levied at importation. This prevents a cascading tax effect where VAT would be charged on the carbon cost itself. The guidance aligns with the EU CBAM Regulation (EU 2023/956) and the VAT Directive.
Key Takeaways
- VAT Base Exclusion: CBAM certificate costs are excluded from the taxable amount for import VAT.
- Accounting Separation: Importers must separately record CBAM expenditures to substantiate the exclusion during audits.
- Sector Impact: Affects importers of cement, iron/steel, aluminum, fertilizers, electricity, and hydrogen subject to CBAM.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement