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Austria Repeals VAT on Protective Masks for COVID-19 — Orbitax Tax News & Alerts

The Austrian Ministry of Finance has issued a release on the repeal of VAT on protective masks, which are now required to be worn due to COVID-19.


14 April 2020

Blümel: Wearing masks now compulsory – no VAT on protective masks

Finance Minister Blümel repeals tax on respirator masks – 0% VAT from 13-APR-2020

Especially during a successive revival of the economy, the principle remains: look after yourself, look after me. Protection masks covering the nose and mouth can prevent others’ body fluids from directly entering the wearer’s oral and nasal region. Wearing protective masks is therefore essential, especially for the protection of high-risk groups, and is now enabling the Austrian economy to slowly recover. With the reopening of small businesses, the obligation to wear protective masks is also extended. Therefore, sufficient protective masks must now be available at a reasonable price, because in addition to wearing them in the shops, they are now also compulsory in public transport, such as the underground. This important measure is supported financially, and VAT on respirator masks is therefore repealed by Finance Minister Gernot Blümel.

"Now it is a matter of persevering and continuing to protect our fellow human beings. Here, respirator masks are a key health precaution to prevent infection by droplet infection. That is why we have reduced the tax rate for delivery and purchase to 0 %, thus keeping the financial burden of the obligation to wear protective masks for citizens as low as possible. For times of crisis must not be times of bureaucracy," according to Finance Minister Blümel.

The Federal Ministry of Finance reduces the tax rate on respirator masks from 20% to 0% for supplies and intra-Community acquisitions. This applies to supplies and intra-Community acquisitions made after 13-APR-2020 and before 01-AUG-2020. The legal basis will provide for a corresponding retroactive entry into force. The corresponding VAT rate must already be stored in the POS system and settled so that no subsequent corrections of invoices and reclaims of VAT amounts are necessary.