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Austria: Update on proposals for digital services tax

Austria: Update on proposals for digital services tax

The Austrian Ministry of Finance in the spring of 2019 proposed a draft bill that would introduce a “digital tax” or, in other words, a tax on digital advertising. The proposal was viewed as being comparable to a previously discussed EU concept for a tax on digital advertising (one on which the EU did not reach a conclusion).

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The Austrian proposal would have provided for a digital tax to be imposed at a rate of 5% on the turnover from advertising services rendered in Austria, provided that the service provider has a global turnover of at least €750 million and a turnover in Austria (from online advertising services) of at least €25 million.

In the meantime, in late May 2019, there was a change in the Austrian government. Currently, there is a transitional (interim) government in control, and it is organizing elections scheduled for late September 2019.

The status of the digital services tax proposal is, therefore, uncertain at present.

  • Members of the former government issued an “initiative proposal” for the introduction of a digital services tax in the last session of the Austrian parliament before the summer-break.
  • The initiative proposal is substantially similar to the discussion draft published by the former government in May 2019.
  • There are tax professionals who believe that the purpose of the initiative proposal is to enable the parliament to consider in early September 2019 (before the elections) a bill for the digital services tax.

What will happen next is not certain. More information will be available when the parliament convenes for its September session.


For more information, contact a tax professional with the KPMG member firm in Austria:

Markus Vaishor | + 43 1 31332-3652 | mvaishor@kpmg.at

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