COVID-19: Draft bill – VAT rate reduction for gastronomy, culture and publishing sectors, Exemption for vitro diagnostics and COVID-19 vaccines, etc

Draft Budget 2021 submitted to Parliament, including:

• Temporary application of a reduced VAT rate of 5% in the gastronomy, culture and publishing sectors shall be prolonged to last until 31 December 2021
• Introduction of a VAT exemption for COVID-19 in vitro diagnostics and COVID-19 vaccines until the end of 2022
• Reduced Vat rate of 10% to repair services (including repair and modification) relating to bicycles, shoes, leather goods and clothing as from 1 January 2021
• Necessary adjustments to the Austrian VAT Act to reflect the consequences of Brexit after 31 December 2020

Source:

• KPMG
• BDO