News out of
Austria hints that the reduced
VAT rate will be increased next year. Most goods and services -
including livestock, seeds, cultural services, museums, zoos and
hotels - will see the rate go up to 13%, from the current 10%.
However, the standard VAT rate of 20% will not change and the
current reduced 10% rate will continue to apply to food and
pharmaceuticals. It creates a three-tier system for VAT in
Austria.
The changes will take effect from 1 January 2016; VAT on hotel
accommodation will increase from either 1 April or 1 May
2016.
While precise details of the Budget measures are not yet known,
it is expected that certain anti-fraud measures will also be
introduced; the likes of mandatory electronic cash registers for
small businesses, a prohibition on cash payments in the
construction industry may be introduced, as well as other
unspecified measures to combat VAT fraud in general and
specifically in the case of distance sales.
