Value-added tax is an indirect levy that is included into costs for goods and services and is paid upon buying. In Austria it is scaled for several rates: standard – 20%, reduced – 10% and other rates – 5%, 13%, 19%.
Standard VAT (20%) is applied to all transactions across the Republic, until exceptions are implemented. Reduced tax amounting to 10% is added to food, water, pharmaceutical products, passenger transportation, books, TV, hotel accommodation, restaurants, street cleaning, and garbage removal.
In order to support companies working in certain fields during the global pandemic, the tax authorities have introduced a reduced tax rate of 5% which concerns cultural venues, F&B, e-books and costs for hotel suites. This rate is expected to be effective up until the end of 2021.