Finance Minister Gernot Blümel and Tourism Minister Elisabeth Köstinger (both ÖVP) emphasized on Saturday that the corona aid for the sales tax cut, the liability package and the tax deferrals will be extended. What is new is that the sales tax for Covid tests and vaccinations will be canceled, i.e. reduced to 0 percent. The necessary motions for this were introduced in the National Council meeting on Friday.
The 5 percent reduction in sales tax in the catering, hotel and cultural sectors will be extended until December 31 of next year. In addition, by the end of 2021, all food and drinks in the catering trade are to be subject to this favorable tax rate of 5 percent. Overall, culture and tourism would be relieved of around 1.5 billion euros, the aim is to avoid bankruptcies.
Existing tax deferrals are to be extended and granted from January 15 to March 31, 2021. In the same period, no deferred interest or late payment penalties should be set.
Short-time work, tax cuts for tests and vaccinations
The tax breaks for employees will also be extended until the end of March, despite short-time work, teleworking or quarantine. In spite of everything, the commuter allowance should be granted in full. The same applies to allowances such as difficulty and danger.
In the calendar year 2021, too, a flat-rate surcharge of 15 percent should be taken into account for periods of short-time work when calculating the annual sixth. The short-time work affects the calculation of the so-called sixth of the year in the income tax calculation. The extension of the preferential taxation is intended to prevent that part of the Christmas bonus that is above the lower sixth of the year (due to short-time work) from being taxed according to the tariff. With a taxation of 6 percent in the coming year, the current salaries will decrease.
In the case of the VAT reduction for corona tests and vaccinations, the delivery, intra-Community acquisition and import of COVID-19 in-vitro diagnostics and COVID-19 vaccines, as well as other services closely related to these diagnostics or vaccines, are until 31 December 2022. This applies 20 days after it has been made possible at European level, which still has to be done.
“Tax deferrals alone are currently 6.4 billion euros. This money remains in the companies and increases liquidity,” said Finance Minister Blümel. “Gastronomy, hotels, travel agencies, leisure and event companies are still among the main victims of the corona crisis,” said Tourism Minister Köstinger. “In view of the persistently difficult situation, it is important that we continue to support these industries.”
