Austria introduces reverse charge on goods from 2012

Tue 12th Apr 2011

The Austrian VAT authorities have announced plans to extend the reverse charge VAT reporting mechanism for EU sales from 1 January 2012. This follows similar changes in other European Union countries.

A new draft Tax Law was issued at the start of March 2011 outlining the proposals. This includes extending the reverse charge from the provision of to services to include most goods supplied from another EU member state by a trader who does not have a permanent establishment in Austria.

EU Reverse Charge and Value Added Tax

A number of other EU member states have also recently introduced reverse charge accounting for VAT in a bid to combat fraud. These include France and Italy. However, there are many variations between the countries on when the reverse charge is applicable – including if the customer has a permanent local establishment.