English Summary 3/2026

The tax changes planned as part of the 2027 and 2028 double budget include, in addition to the adjustments provided for in the (planned) 2027–2028 Budget Accompanying Act (see our Tax News article on this), an amendment to the Regulation on the Value of Benefits in Kind. In the future, a non-cash benefit value should also be applied to the private use of employer-owned vehicles with zero CO2 emissions. This also results in a need for action for VAT purposes.

A. Shubshizsky / P. Mayr / S. Tratlehner

From October 2026 a national parcel delivery tax is to be introduced in Austria. Online Retailers with more than 100 million euros in annual B2C sales carried out in Austria are to be subject to the tax of 2 euros per parcel (alternatively by order), whereby sales made via platforms are being attributed to them. The parcel delivery tax is intended to fund the reduction of the VAT rate for supplies of selected food items (see our Tax News). Moreover, it is intended to respond to the continuing strong growth of online trade and to achieve ecological and locational steering effects. The national parcel delivery tax is a special national tax levied by Austria and no customs duty.

S. Tratlehner

In addition to proposed (last) amendments to the Austrian BORA, already discussed in May 2026 in our Tax News 2/2026, the Ministry of Finance presented the draft of the new BORA Bill 2027 in March 2026, for the implementation of the 6th EU-AML-Directive and enacting procedures for the application of all requirements of the new, self-executing AML-Regulation (EU) 2024/1624, effective as of July 10, 2027.

C. Edelhauser

With a new comprehensive tax simplification package, the European Commission aims to provide important momentum to reduce tax compliance burdens and to strengthen competitiveness within the EU. The present directive proposal for a “Tax Omnibus” is intended to revise several EU directives in the field of direct taxation at once (including the Interest and Royalties Directive, the Parent-Subsidiary Directive, and ATAD).

M. Barz / D. Bauer

With the draft bill for the German Annual Tax Act 2026, the German Federal Ministry of Finance (BMF) is planning far-reaching changes to the exemption procedure. In particular, the application-free exemption procedure for cross-border royalty payments is to be significantly expanded by increasing the exemption threshold to EUR 100,000 per payee. At the same time, it is envisaged to abolish the exemption procedure for dividends from German stock corporations if the shares are held in collective or special custody.

M. Barz

The previous DTA with Argentina had been terminated as of 31 December 2008 at Argentina’s initiative. A new DTA was concluded in 2019 and approved by the Austrian Parliament in December 2020. From the Argentine side, the required domestic procedures were completed in June 2026, allowing the DTA to enter into force and become applicable as of 1 January 2027.

G. Gottholmseder / D. Bauer

In its eagerly awaited judgment in the Stellantis case (C-603/24), the CJEU deals with the VAT consequences of transfer pricing adjustments (to the Opinion of AG Kokott see Link). The CJEU emphasizes that the existence of an exchange of services relevant to VAT requires a direct link between the supply and the consideration. To that end, there must be a legal relationship characterized by reciprocal commitments relating to the supply of services by the acquiring company to the selling company and the payment of remuneration by the selling company in respect of those services in the form of such a transfer pricing adjustment. For the repair service (from GMP to the OEM) assumed by the Portuguese tax authorities in the facts underlying the Stellantis case, the CJEU denies this. However, referring to the Opinion of AG Kokott in this regard, the CJEU seems to assume a subsequent change in the price paid by GMP to OEMs for the (intra-Community) acquisition of these vehicles and refers to the competence of the national authorities to assess the associated effects on the determination of the taxable amount of the transaction. The CJEU does not go into further detail on the proposed classification of profit adjustments for VAT purposes made by GA Kokott in her opinion (see Link).

T. Hahn / S.Tratlehner

Both heated discussions in the professional literature and media reports on “IT glitches” at the tax offices have recently caused a stir and sparked heated debate: In the FinanzOnline Databox, new substantive assessment notices with increased tax liabilities were served before procedural reopening orders. According to the Federal Fiscal Code (BAO), this is not envisaged. Consequently, according to the Austrian Federal Finance Court, such substantive assessments were unlawful. The Austrian Supreme Administrative Court has now offered reassurance with a sort of legal fiction that ultimately amounts to simultaneous service: The incorrect order of service in the Databox was based – against the tax office’s wishes – on “technical coincidences”.

S. Papst / G. Schaunig

The taxpayer files his income tax return 2022 on 4.4.2024. After having responded to a request of the tax office, the income tax assessment notice is issued on 7.11.2024. This triggers interest for the period 1.10.2023 – 7.11.2024, as the interest corresponds with the objective advantage of the late payment. Whether the tax office could have reacted faster is irrelevant according to a recent decision by the Austrian Federal Finance Court.

C. Endfellner

The appellant has two employments in parallel; the resulting tax assessment leads to an additional tax payment. He applies for payment in instalments, which is granted and triggers interest payments. As the interest is considered neither factually nor personally unfair, the request to waive the deferral interest is denied according to a recent decision by the Austrian Federal Finance Court.

C. Endfellner

An agricultural machine was acquired through a lease. The value-added tax of EUR 62,400 shown on the supplier’s invoice to the lessor was immediately and fully claimed as input tax by the lessee’s accountant. The Austrian Federal Finance Court recently did not characterize the accountant’s actions as intentional; however, it found that gross negligence had occurred.

S. Papst / M. Kabler

Approximately two years after the introduction of Art. 51b of the Austrian Act on Tax Offences (FinStrG), the Austrian Federal Finance Court recently issued its first ruling on this provision. Although the new offense is, so to speak, an “outsider” in the system of criminal tax law, it has clearly taken root in the authorities’ criminal enforcement practices.

S. Papst / G. Schaunig