The Austrian Government has issued a release on its tax reform plans, including measures for the taxation of the digital economy, which include a 3% tax on revenue from online advertising and reporting obligations for online intermediary platforms.
As the EU has not yet agreed on an approach for the Member States, the Austrian Government, a coalition of Conservatives and the Freedom Party, now wants to introduce a country-specific digital tax. The digital tax aims to implement fair taxation of the digital economy. New levies on Internet advertising, online retailers and sharing platforms would potentially add up to about €200m of additional tax revenue.
The government laid out the following three measures to tax the digital economy in its tax reform plans:
In addition to measures for the digital economy, the tax reform plans to reduce the VAT rate to 10% on electronic publications in line with traditional publications and providing tax relief for individuals and SMEs from 2020.
The Austrian Ministry of Finance will publish further details of the planned measures in due time.
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