Austria

As part of a targeted relief package, Austria has reduced the VAT rate from 10% to 5% on a defined list of basic foodstuffs effective 1 January 2026. The list includes bread, cereals, milk, eggs, fruits, vegetables, and meat, aligned with the Combined Nomenclature (CN) codes. The Ministry of Finance published extensive classification guidance to

The Austrian Ministry of Finance released the first set of Frequently Asked Questions (FAQs) on the Minimum Tax Act (Mindestbesteuerungsgesetz), which transposes the EU Directive on Pillar Two (global minimum 15% corporate tax) into national law. The FAQs address scope, qualifying domestic top-up tax, safe harbors, filing obligations, and transitional rules for fiscal years starting

The protocol amending the Double Taxation Agreement (DBA) between Austria and China entered into force on 1 January 2025. Key changes include the reduction of withholding tax rates on dividends (from 10% to 5% for beneficial owners holding at least 25% of capital), interest (from 10% to 0%), and royalties (from 10% to 6%). The

Austria has joined a multinational initiative to implement the OECD’s Crypto-Asset Reporting Framework (CARF), which mandates automatic exchange of information on crypto-asset transactions between tax authorities. The framework covers custodial wallet providers, exchanges, and certain decentralized finance (DeFi) operators. The Ministry of Finance published a roadmap for domestic legislation, requiring crypto-asset service providers (CASPs) to

Austria has suspended the Double Taxation Agreement (DBA) with Belarus effective 1 January 2026, following the EU Council’s decision to restrict cooperation with Belarus due to human rights violations and the country’s involvement in the Russian aggression against Ukraine. The suspension means that treaty benefits—reduced withholding taxes on dividends, interest, and royalties, as well as

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

The Ministry of Finance clarified the wage tax treatment of the one-time purchasing power premium (Kaufkraftsicherungsprämie) agreed in the 2026 collective agreement for the metal industry. The premium, paid to compensate for inflation, is fully subject to income tax and social security contributions. However, it benefits from the favorable taxation of ‘other remuneration’ (Sonstige Bezüge)

Austria has amended the Alcohol Tax Act (Alkoholsteuergesetz) to implement EU Directive 2020/1151 on the taxation of alcohol and alcoholic beverages. Key changes include updated definitions of ‘alcohol’ and ‘alcoholic beverages’, revised tax rates for intermediate products and fermented beverages, and new provisions for small distilleries and home production. The reform also introduces a simplified

The Austrian Administrative Court (VwGH) ruled in case Ro 2024/16/0006 that hemp flowers (CBD flowers) with a THC content below 0.3% are subject to tobacco tax when sold for smoking. The court interpreted the Tobacco Tax Act (Tabaksteuergesetz) to include’smoking hemp’ as a taxable product, regardless of its narcotic status. The decision has significant implications

Austria has implemented a 0% VAT rate for the supply and installation of photovoltaic (PV) modules effective from 1 January 2026, in line with EU Directive 2022/542 allowing reduced rates for green energy technologies. The measure applies to both the modules and essential installation services when supplied as a single contract. The Federal Ministry of