Background information

In order to support the catering, hotel, cultural and publishing sectors, which have been particularly affected by the COVID-19 crisis, a temporary reduced value added tax (VAT) rate of 5% is introduced. This applies to accommodation and camping sites, to the supply of all food and beverages in the gastronomy sector (from formerly 20%), as well as with regard to services in the cultural sector and supplies in the publication sector in general (from formerly 10 or 13%).

Content of measure

The VAT rate is reduced on the supply of food and beverages (alcoholic and non-alcoholic). This applies not only to catering establishments but also to the supply of food and beverages in confectioneries, bakeries and butchers' shops.

The VAT for overnight stays is also reduced in hotels, in other collective accommodation establishments and on campgrounds.

In the publication and culture sector, to supplies, imports and intra-community acquisitions of the following type, the 5% VAT is applied:

*books, brochures and similar printed matter * newspapers and other periodicals * electronic publications * picture albums, picture books and drawing and colouring books for children * sheet music, handwritten or printed * cartographic products of all kinds, including hiking maps * paintings and drawings, entirely handmade, collages * original engravings, cuts and lithographs * original products of the art of sculpture * tapestries, hand-woven, after original designs by artists * textiles for wall coverings according to original designs by artists * artistic photographs

The reduced tax rate also applies to the following services:

• turnover from the activity as an artist
• services regularly associated with the operation of a theatre
• events of theatre performances by other entrepreneurs
• musical and vocal performances by individuals or groups of individuals, in particular orchestras, music ensembles and choirs (also for events of such musical and vocal performances by other entrepreneurs)
• film screenings
• the visit of botanical or zoological gardens and nature parks
• circus performances
• services from the activity as a carney

Use of measure

Automatically used by all organisations concerned by the lower value added tax rate.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies Importing/Exporting companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

Unknown.

Views and reactions

Not available.

Sectors and occupations

This case is not occupation-specific.

Sources

• 09 July 2020: Sales tax lowered to 5 percent (www.wko.at)
• 09 July 2020: FAQs reduced sales tax (www.bmf.gv.at)