Austria introduces digital tax

The Government of the Republic of Austria is planing to introduce a digital tax.

The software package provides for the introduction of a 5% digital tax in respect of large digital corporations, as well as liability provisions for digital agent platforms and mandatory VAT for digital retail platforms.

A 5% tax will be levied on the income of large companies from online advertising with a total sales of 750 million euros, 25 million of which come from sales of digital advertising in Austria.

There will also be a mandatory VAT for digital trading platforms. Previously, parcels made through an order in online stores from third countries were exempted from VAT if the cost was less than 22 euros.

Thus it is planned to achieve equity in the taxation of the digital economy.

On materials of the following website: https://english.bmf.gv.at/ministry/press/Loeger_Fuchs_digital_tax_on_large_digital_corporations_.html