After a longer planning phase, the changes in the Austrian VAT law regarding travel services have now entered into force as of 1 January 2022. As part of the annual revision of the VAT Guidelines, the view of the tax authorities on travel services were also adapted to reflect the new legal situation. In addition, current ECJ case law has been incorporated.
The Austrian VAT Act contains a special provision for the VAT treatment of travel services. Essentially, the margin between the outgoing and incoming services is taxed and the input VAT deduction as regards the incoming services is not allowed. An infringement procedure has been initiated, as the Austrian provision was not fully in line with the Union legal basis - the VAT Directive. The following necessary legislative changes have now entered into force as of 1 January 2022:
In the course of the amendments to the Austrian VAT Guidelines in 2021, the legislative changes were also incorporated into the Austrian VAT Guidelines. Furthermore, adjustments were made for the sake of clarification or to incorporate case law. In the following we provide an overview of selected amendments:
There are significant changes in the area of travel services as of 2022. If a taxable person provides travel services (even if only in the context of company outings), it is advisable to carry out a detailed VAT analysis. In addition to the legislative changes, the far-reaching adjustments of the VAT Guidelines must also be considered.
Verena Gabler ist Partner im Bereich Steuerberatung und leitet die Tax Management Consulting Abteilung bei Deloitte Österreich. Die Umsatzsteuer-Spezialistin hat sich auf die Prozessberatung spezialisiert und unterstützt ihre Klienten bei der Entwicklung und Implementierung von Steuerkontrollsystemen. Dabei begleitet sie ihre Klienten bei der Analyse und Reduktion von steuerlich relevanten Risiken, der Optimierung von Prozessen und der Erhöhung des Automatisierungsgrades der Steuerfunktion durch den Einsatz von steuerrelevanter Software.