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).
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.
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 | firstname.lastname@example.org
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