“Self-employed” or “Employee” – since July 1st 2017 a binding decision by the social insurance is possible in Austria, even in advance
LBG-Summary: The classification “Self-employed” or “Employee” can be challenging and has, if wrong, severe consequences on social security and taxes in Austria. In practice, difficulties in the classification arise mainly when freelancers are predominantly working for one client or are integrated into their client’s economic organization. In the course of an audit by the authorities, the question regularly arises is whether the customer has to be qualified as an employer - with all associated obligations and additional payment. In order to provide a binding effect and avoid later consequences, as of July 1st 2017 certain groups, notably “new self-employed”, freelancers, farmers carrying out sideline activities, will be checked by questionnaire – now already before starting to work – if they are assigned to the correct social security and therefore correctly classified “self-employed” or “employee”. The social security check is also possible for existing employment.
Contact & Advise: Our experts in the consulting field “payroll accounting, income tax, social security, labour law” will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
July 14, 2017
Our Business:
■ Tax Consulting & Tax Planning
■ Forming and Changing the Legal Structure
■ Establishing a Business in Austria
■ Financial Statements, Financial Reporting
■ Budgeting, Cost Accounting
■ Accounting, Payroll Accounting, HR-Reporting
■ Income Tax, Social Security Contribution
■ Business Valuation, Expert Opinion
■ Audit, Mergers & Acquisitions
Tax-News | Business-News
Previous issue
Next issue
The Austrian Supreme Administrative Court clarified: VAT-free intra-Community supply of goods also applies if both, supplier and buyer take part in an “interrupted” transportation of goods
LBG-Summary: Recently, the Austrian Supreme Administrative Court had to decide if in cases, where the responsibility of the transportation of goods is split by supplier and buyer has to be considered as two separate VAT-relevant processes in the EU or one consistent delivery. The decision of the Supreme Administrative Court that also “split” transportations have to be considered as consistent delivery lead to VAT facilitations.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
July 14, 2017
LBG-Summary: Recently, the Austrian Supreme Administrative Court had to decide if in cases, where the responsibility of the transportation of goods is split by supplier and buyer has to be considered as two separate VAT-relevant processes in the EU or one consistent delivery. The decision of the Supreme Administrative Court that also “split” transportations have to be considered as consistent delivery lead to VAT facilitations.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
July 14, 2017
VAT: If the distance selling threshold in an EU recipient country is exceeded, the Austrian supplier owes foreign VAT
LBG-Summary: Due to the free movements of goods within the EU, the delivery of goods to foreign customers is generally easy and non-bureaucratic. However, as an entrepreneur you have to pay special attention to the respective distance selling thresholds in the EU which come into effect when delivering notably to private individuals, small enterprises on behalf of VAT rules or flat-rate farmers. If the Austrian supplier exceeds the distance selling threshold in a certain EU country (for example Germany € 100.000, Italy € 35.000, France € 35.000), the VAT liability is shifted from Austria to that particular EU recipient country. Note: If goods are dispatched or transported from an EU-Member State to Austria by a foreign supplier or on behalf of a foreign supplier exceeding the Austrian distance selling threshold (€ 35.000), the VAT liability is shifted to Austria and the foreign supplier owes Austrian VAT.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
July 14, 2017
LBG-Summary: Due to the free movements of goods within the EU, the delivery of goods to foreign customers is generally easy and non-bureaucratic. However, as an entrepreneur you have to pay special attention to the respective distance selling thresholds in the EU which come into effect when delivering notably to private individuals, small enterprises on behalf of VAT rules or flat-rate farmers. If the Austrian supplier exceeds the distance selling threshold in a certain EU country (for example Germany € 100.000, Italy € 35.000, France € 35.000), the VAT liability is shifted from Austria to that particular EU recipient country. Note: If goods are dispatched or transported from an EU-Member State to Austria by a foreign supplier or on behalf of a foreign supplier exceeding the Austrian distance selling threshold (€ 35.000), the VAT liability is shifted to Austria and the foreign supplier owes Austrian VAT.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
July 14, 2017
Employment bonus for new jobs – application as of July 1st 2017
LBG-Summary: Starting on July 1st 2017, companies are entitled to apply for a refund of 50% of non-wage labor costs (e.g. employer social security contribution) for each newly created job over a period of up to three years. The funding is accessible to companies regardless of their size or the business sector in which they operate provided that their headquarters or permanent establishment is located in Austria. The public financing bank Austria Wirtschaftsservice (aws) is responsible for handling the application and granting of funding.
Contact & Advise: Our experts in the consulting field “payroll accounting, income tax, social security, labour law” will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
June 28, 2017
LBG-Summary: Starting on July 1st 2017, companies are entitled to apply for a refund of 50% of non-wage labor costs (e.g. employer social security contribution) for each newly created job over a period of up to three years. The funding is accessible to companies regardless of their size or the business sector in which they operate provided that their headquarters or permanent establishment is located in Austria. The public financing bank Austria Wirtschaftsservice (aws) is responsible for handling the application and granting of funding.
Contact & Advise: Our experts in the consulting field “payroll accounting, income tax, social security, labour law” will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
June 28, 2017
Foreign scientists and researchers switching their “center of vital interest” to Austria are entitled to claim new attractive Austrian tax benefits
LBG-Summary: According to the “Zuzugsbegünstigungsverordnung 2016” scientists and researchers switching their “center of vital interest” to Austria are entitled to claim an additional tax allowance of 30 percent of taxable income from domestic (and partly also foreign) scientific and research activities for a period of five years maximum. The application for obtaining such tax benefits must be filed with the Austrian Ministry of Finance within six months from the date of the move to Austria, after that period claims for the tax benefit are invalid. In order to qualify for the tax benefits the moving in of the highly qualified person has to serve the advancement of science and research and must be in public interest.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
June 13, 2017
LBG-Summary: According to the “Zuzugsbegünstigungsverordnung 2016” scientists and researchers switching their “center of vital interest” to Austria are entitled to claim an additional tax allowance of 30 percent of taxable income from domestic (and partly also foreign) scientific and research activities for a period of five years maximum. The application for obtaining such tax benefits must be filed with the Austrian Ministry of Finance within six months from the date of the move to Austria, after that period claims for the tax benefit are invalid. In order to qualify for the tax benefits the moving in of the highly qualified person has to serve the advancement of science and research and must be in public interest.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
June 13, 2017
Simplified establishment of a limited liability company in Austria by a sole shareholder as of January 1st 2018
LBG-Summary: The deregulation law 2017 allows as of January 1st 2018 – initially limited to a period of three years – the establishment of a limited liability company by a sole shareholder without a notary if certain requirements are met. For the establishment of a limited liability company it will then be sufficient to provide – instead of a notary deed – the electronic declaration about the foundation of the limited liability company via the business service portal and the electronic application of the registration in the commercial register. Despite this (in general) good news we highly recommend seeking tax and economic advice before establishing a limited liability company. Sense, alternatives, consequences on business relations, financing, taxes, social security and much more need to be clarified in detail.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
May 26, 2017
LBG-Summary: The deregulation law 2017 allows as of January 1st 2018 – initially limited to a period of three years – the establishment of a limited liability company by a sole shareholder without a notary if certain requirements are met. For the establishment of a limited liability company it will then be sufficient to provide – instead of a notary deed – the electronic declaration about the foundation of the limited liability company via the business service portal and the electronic application of the registration in the commercial register. Despite this (in general) good news we highly recommend seeking tax and economic advice before establishing a limited liability company. Sense, alternatives, consequences on business relations, financing, taxes, social security and much more need to be clarified in detail.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
May 26, 2017
In order to claim deduction of input VAT in Austria it is required to carefully check the contract partner
LBG-Summary: If an entrepreneur makes taxable transactions, he is obligated to issue an invoice. Only if the invoice contains in principle all invoice details, the customer (recipient of the supply of goods or services) is entitled to claim deduction of input VAT. It is therefore recommended to carefully check if an invoice contains all relevant details – for invoices over € 400 (including VAT), among others, the name and address of the supplier and customer, the quantity and the commercially used description of the goods supplied, the date of supply, the amount of tax payable and the VAT identification number of the issuer of the invoice. In this regard, every entrepreneur is obligated to check the validity of the VAT number of the issuer of an invoice by a two-step UID-query (VAT-query) via FinanzOnline and to keep the result of the query.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
May 26, 2017
LBG-Summary: If an entrepreneur makes taxable transactions, he is obligated to issue an invoice. Only if the invoice contains in principle all invoice details, the customer (recipient of the supply of goods or services) is entitled to claim deduction of input VAT. It is therefore recommended to carefully check if an invoice contains all relevant details – for invoices over € 400 (including VAT), among others, the name and address of the supplier and customer, the quantity and the commercially used description of the goods supplied, the date of supply, the amount of tax payable and the VAT identification number of the issuer of the invoice. In this regard, every entrepreneur is obligated to check the validity of the VAT number of the issuer of an invoice by a two-step UID-query (VAT-query) via FinanzOnline and to keep the result of the query.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
May 26, 2017
Formal requirement for deduction of input VAT – European Court of Justice (ECJ) rectifies tax authorities
LBG-Summary: The ECJ had to decide, if an entrepreneur is entitled to claim deduction of input VAT even if the invoice does not meet all domestic formal requirements but he encloses all relevant documents that proof that the substantive requirements for the deduction of input VAT are met. The ECJ ruled, that tax authorities are not allowed to refuse the right to deduct input VAT when all the information that a taxable person has complied with substantive requirements is available, ergo not only the information on the invoice but also the additional information from the taxable person has to be taken into account.
Despite this good news we highly recommend to comply exactly with all Austrian formal requirements for deduction of input VAT. If in a particular case tax authorities refuse the deduction of input VAT we will represent your rights in consideration of the existing case law of the ECJ.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
May 26, 2017
LBG-Summary: The ECJ had to decide, if an entrepreneur is entitled to claim deduction of input VAT even if the invoice does not meet all domestic formal requirements but he encloses all relevant documents that proof that the substantive requirements for the deduction of input VAT are met. The ECJ ruled, that tax authorities are not allowed to refuse the right to deduct input VAT when all the information that a taxable person has complied with substantive requirements is available, ergo not only the information on the invoice but also the additional information from the taxable person has to be taken into account.
Despite this good news we highly recommend to comply exactly with all Austrian formal requirements for deduction of input VAT. If in a particular case tax authorities refuse the deduction of input VAT we will represent your rights in consideration of the existing case law of the ECJ.
Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.
May 26, 2017