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Austria: Reduction of the value added tax – What has to be done?

Reduction of the value added tax for the gastronomy industry

The Hospitality Package approved on the 27th of May 2020 brings tax relief as well as further support and incentives for the gastronomy industry affected by the Corona crisis. The temporary reduction in value-added tax on non-alcoholic beverages from 20 to 10 percent, which comes into force on 1st of July, will bring a relief of approximately 200 million euros by the end of December. The planned elimination of the sparkling wine tax in 2022 will now be implemented more quickly. Other measures, such as raising tax-exempt fees for employees’ meal vouchers or increasing the deductible amount for business meals from 50% to 75% are intended to boost sales in the more than 60,000 gastronomy businesses.

Do tax schemes need to be adjusted and what is the effect of the adjustment on the main groups? How will the taxes on non-alcoholic beverages be changed? How do I update the products of the connected POS systems in Delegate? Is it possible to adjust tax rates manually if revenues have already been recorded for the period after 01.07.2020?

Mehrwertsteuersenkung

Gastronomy operations are now allowed to operate again under strict conditions and therefore you have to be prepared. We want support our customers in the difficult times and have created a simple guideline. This guideline explains in simple steps what has to be done and how the VAT rate has to be stored correctly in the Delegate system.

For all our customers the guideline is already available since last week on our helpdesk portal as a free download. All important questions have been covered in the guideline, but if you have any further questions, please don’t hesitate contact your responsible Service Manager at any time, who will be happy to assist you with the adjustment.

Did you know that gastronomy provides one of the largest employment opportunities in Austria with over 210,000 employees? In addition, the industry makes a valuable contribution to the Austrian economy with a turnover of around 11 billion euros. According to a survey conducted by the online market and opinion research institute Marketagent.com, pasta is the most popular dish among Austrians. The classic Wiener Schnitzel is particularly popular with men. Find more details about the Austrians’ favourite dishes here.