Austria: Ministry of Finance Issues Clarification on Employee Use of Employer-Owned Vehicle
On September 11, the Austrian Federal Ministry of Finance published details of Federal Finance Court Decision No. GZ. RV/2100440/2023, providing clarification on the tax treatment related to an employee’s use of an employer-owned vehicle. The case involved a German company that provided one of its Austrian employees with a vehicle for business purposes, with the option for private use.
Key points from the court’s decision include:
Background:
- The Austrian Tax Office imposed VAT on the vehicle’s use, viewing the employee’s work as compensation for making the vehicle available.
Court Ruling:
- The court determined that providing the vehicle for more than 30 days to a non-entrepreneurial employee was deemed a rental arrangement in Austria, where the employee had a place of residence, registered office, or habitual abode.
- It was further ruled that there was a taxable exchange of services, with the employee’s work performance considered as compensation for the provision of the vehicle.
The court dismissed the appeal against the tax assessment, reinforcing that the vehicle’s use by the employee was subject to VAT in Austria.
Source: Findok
EU VAT rates table
Last update: 26/08/2024
| Country | Standard VAT Rates | Reduced VAT Rates |
| VAT rate in Austria | The standard VAT rate is 20% | Austria applies a 13% intermediate VAT rate to certain supplies, including domestic air travel, while a reduced VAT rate of 10% is applied to supplies such as rental of real estate. |
| VAT rate in Albania | The standard VAT rate is 20% | A 10% reduced VAT rate applies to electric public transport vehicles with at least nine passenger seats and select agricultural supplies. A 6% VAT rate is applicable to specific supplies outlined in Article 49 of the VAT Law. |
| VAT rate Belgium | The standard VAT rate is 21% | Belgium enforces two reduced rates – the “First Reduced Rate” at 6% and the “Second Reduced Rate” at 12%. These rates apply to a restricted range of transactions. |
| VAT rate Bulgaria | The standard VAT rate is 20% | As per Article 66a of the VAT Law, the reduced VAT rate in Bulgaria stands at 9%. |
| VAT rate Croatia | The standard VAT rate is 25% | The Croatian VAT Act stipulates a first reduced rate of 13% and a second reduced rate of 5%. |
| VAT rate in Cyprus | The standard VAT rate is 19% | The first reduced rate of 9% and second reduced rate of 5% are stated in Articles 18 and 18A of the VAT Law as well as a third reduced rate of 3%. |
| VAT rate in Czech Republic | The standard VAT rate is 21% | 12% |
| VAT rate in Denmark | The standard VAT rate is 25% | |
| VAT rate in Estonia | The standard VAT rate is 22% | In accordance with Section 15 of the Estonian VAT Act, there are two reduced rates for Value Added Tax – the primary one being 9%, and the secondary one being 5%. |
| VAT rate in Finland | The standard VAT rate is 25.5% | There are two reduced rates for Value Added Tax in Finland; the first reduced rate stands at 14%, while the second reduced rate is 10%. |
| VAT rate in France | The standard VAT rate is 20% | The General Tax Code’s Article 278-0 bis and subsequent provisions outline three different rates for Value Added Tax. An intermediate rate of 10%, a primary reduced rate of 5.5%, and a secondary reduced rate of 2.1% are included. |
| VAT rate in Germany | The standard VAT rate is 19% | As of January 1, 2021, the German VAT Act’s §12 designates a reduced rate of 7% for Value Added Tax in Germany. |
| VAT rate in Greece | The standard VAT rate is 24% | Annex III of the Greek VAT Code designates specific supplies of goods and services that are subject to reduced rates of Value Added Tax. Article 21 of the same code specifies that a reduced rate of 13% and a super-reduced rate of 6% apply to these supplies. Additional some goods and services receive a reduced rate of 4% |
| VAT rate in Hungary | The standard VAT rate is 27% | Various supplies are subject to a reduced VAT rate of 5% and an intermediate VAT rate of 18%, as stipulated by Article 82 of the Hungarian VAT Act |
| VAT rate in Ireland | The standard VAT rate is 23% | In Ireland, Section 46 of the VAT Act and Schedule 3 outline three reduced rates for Value Added Tax that apply to specified supplies. These include a primary reduced rate of 13.5%, a secondary reduced rate of 9%, and a tertiary reduced rate of 4.8%. |
| VAT rate in Italy | The standard VAT rate is 22% | Italy’s Value Added Tax system includes three reduced rates, which are referred to as the “first reduced rate,” “second reduced rate,” and “super-reduced rate.” Specifically, these rates stand at 10%, 5%, and 4%, respectively. |
| VAT rate in Latvia | The standard VAT rate is 21% | According to Article 42 of the Latvian VAT Law, two different reduced rates of Value Added Tax are available, known as the “First Reduced Rate” and the “Second Reduced Rate.” These rates stand at 12% and 5%, respectively. |
| VAT rate in Lithuania | The standard VAT rate is 21% | The Lithuanian VAT Law’s Article 19 outlines two different reduced rates for Value Added Tax. The “First Reduced Rate,” which stands at 9%, applies to specific supplies, such as residential heating and print publications. Meanwhile, the “Second Reduced Rate,” which is 5%, applies to particular goods and services that are related to medicine and health. |
| VAT rate in Luxembourg | The standard VAT rate is 17% | Effective from January 1, 2023, until December 31, 2023, Article 39 of the Luxembourg VAT Law specifies that different rates of Value Added Tax will apply. The intermediate reduced rate of VAT is 14%, the reduced rate is 8%, and the super-reduced rate is 3%. |
| VAT rate in Liechtenstein | The standard VAT rate is 8.1% | 2.6%, 3.8% |
| VAT rate in Malta | The standard VAT rate is 18% | In accordance with the VAT regulations stated in the Maltese VAT Act’s Eighth Schedule, there exists two reduced VAT rates; the first at 7% and the second at 5% and an intermediate rate of 12% |
| VAT rate in Monaco | The standard VAT rate is 20% | The Tax Code’s Articles 52-0 to 59 dictate the application of varied VAT rates in Monaco, specifically an intermediate rate of 10%, a first reduced rate of 5.5%, and a second reduced rate of 2.1%. |
| VAT rate in The Netherlands | The standard VAT rate is 21% | Article 9 of the Dutch VAT Act designates certain supplies that are eligible for a reduced VAT rate of 9%. |
| VAT rate in Poland | The standard VAT rate is 23% | Goods and services falling under specific categories are subject to a first reduced rate of 8% and a second reduced rate of 5%. |
| VAT rate in Portugal | The standard VAT rate is 23% | As stated in Article 18 of the Portuguese VAT Code, a reduced VAT rate of 6% (5% in Madeira and 4% in the Azores) and an intermediate VAT rate of 13% (12% in Madeira and 9% in the Azores) are applicable. |
| VAT rate in Romania | The standard VAT rate is 19% | The Romanian VAT Code’s Article 291 outlines a First Reduced rate of 9% and a Second Reduced rate of 5%. |
| VAT rate in Slovakia | The standard VAT rate is 20% | Supplies such as basic food items and pharmaceutical products are eligible for a reduced VAT rate of 10% in accordance with Section 27, Annex 7, and Annex 7a of the Slovakian VAT Act. |
| VAT rate in Slovenia | The standard VAT rate is 22% | In compliance with Article 41 of the Slovenian VAT Act, a first reduced rate of 9.5% and a second reduced rate of 5% are available. |
| VAT rate in Spain | The standard VAT rate is 21% | Under Article 91 of the Spanish VAT Act, a reduced VAT rate of 10% is granted to specific agricultural supplies, while a super-reduced rate of 4% applies to supplies such as books. |
| VAT rate in Sweden | The standard VAT rate is 25% | Chapter 7, Section 1 of the Swedish VAT Act stipulates that a first reduced rate of 12% is applicable to supplies that include foodstuffs, while a second reduced rate of 6% is applicable to supplies that include books and other publications. |
| VAT rate in Switzerland | The standard VAT rate is 8.1% | 2,6%, 3,8% |
| VAT rate in the UK | The standard VAT rate is 20% | Article 29A and Schedule 7A of the VAT Act 1994 specify certain supplies that are eligible for a reduced VAT rate of 5%. |