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Austria: Update on digital services tax

Austria: Update on digital services tax

The Austrian Ministry of Finance on 24 February 2020 released information concerning the rules for registration for and payment of the digital services tax.

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Related content

Austria recently introduced a digital services tax for digital advertising services, effective 1 January 2020. Read TaxNewsFlash for further details.

In general, the Austrian digital services tax is imposed at a rate of 5% on the turnover from advertising services rendered by service providers in Austria. Monthly digital services tax payments are to be remitted by the 15th day of the second month following the subject month—for instance, the initial digital services tax payment for January 2020 will be due mid-March 2020.

The Austrian Ministry of Finance’s guidance clarifies the following areas:

  • Even though a service provider is only subject to digital services tax if the taxpayer group turnover is at least €750 million and the turnover from digital advertising services is €25 million, any individual group member company may qualify as a taxpayer for the digital services tax, and consequently must register for the digital services tax and file the applicable tax returns.
  • All taxpayers not having a domicile, place of management or permanent establishment in the EU/EEA must appoint an Austrian fiscal representative for purposes of the digital services tax.
  • Other taxpayers (those with an EU/EEA residence) may either appoint a fiscal representative or alternatively may use an “online digital tax service tool” provided by the tax authorities to file tax returns.
  • The Ministry of Finance’s guidance includes information on the registration process. For all taxpayers within a group having a domicile, place of management or permanent establishment in the EU/EEA, the service provider/group may appoint one company to be responsible for the filing and payment obligations.
  • Finally, the guidance also addresses information regarding monthly payments.


KPMG observation

Officials with the Ministry of Finance, during informal discussions, indicated that additional guidelines regarding the digital services tax may be provided later this year. It is anticipated that such future guidance would provide clarifications. Moreover, it is possible that there could be certain legislative changes proposed later this year regarding the digital services tax.

 

For more information, contact a KPMG tax professional in Austria: 

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

Florian Popl | +43 1 31332 3105 | fpopl@kpmg.at

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