The article analyzes the CJEU ruling in Titanium Ltd v. Finanzamt Österreich (C-931/19) and its implications for fixed establishment and reverse charge in cross‑border B2B services. It clarifies that a fixed establishment requires permanent human and technical resources, and that the reverse charge applies when such an establishment exists. It also notes that Article 47 lex specialis applies to services linked to immovable property, making VAT payable in the Member State where the property is located regardless of a fixed establishment.
The ruling (3 June 2021) confirmed that a fixed establishment requires a permanent presence of both human and technical resources at the place of activity.
The reverse charge under Articles 194/196 applies when a fixed establishment exists in the Member State where services are supplied.
Yes, Article 47 lex specialis applies to services connected with immovable property, making VAT payable in the Member State where the property is situated irrespective of a fixed establishment.
The ruling upheld that the Austrian tax authority could treat the leased property itself as a fixed establishment, leading to VAT assessment in Austria.
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VatCalc · 29 days ago
Austria has increased its Intrastat reporting thresholds for 2026. From 1 January 2026, the arrivals threshold rises to €5 million per annum and the dispatch threshold to €1.2 million per annum. Statistical thresholds remain at €12 million for both arrivals and dispatches.
Wolters Kluwer · about 1 month ago
Austria will exempt menstrual hygiene products and certain contraceptives from VAT from 1 January 2026, replacing a 10 % reduced rate. The Austrian Federal Competition Authority (BWB) is empowered to ensure the tax savings are passed on to consumers and can launch sector investigations if prices do not reflect the relief. This marks a novel use of competition law to safeguard the effectiveness of a gender‑focused social policy.
Bloomberg Tax · about 2 months ago
The Austrian Federal Ministry of Finance clarified the input VAT deduction rules for commercial vehicle leasing in a Federal Finance Court decision. The ruling states that input VAT can only be deducted when the rental activity is a clear, objectively verifiable commercial operation, not merely asset management, and that leasing to related companies alone does not qualify. The decision applies to intra‑community vehicle purchases and impacts companies claiming VAT on passenger cars used for group leasing.
Bloomberg Tax · 2 months ago
Austria’s Official Gazette issued Ordinance No. 19 on 28 January 2026, revising the list of gold coins exempt from VAT. The new rule removes VAT exemption for coins with purity below 90 %. The ordinance updates the legal framework for collectors and dealers of gold coins.
Global VAT Compliance · 2 months ago
Austria has lowered its reduced VAT rate from 10% to 5% for a defined basket of goods, effective 1 July 2026. The change applies only to specified goods and does not affect the standard rate.
ESM Magazine · 3 months ago
Austria will permanently cut the VAT on basic food items from 10% to 5% effective mid‑2026, a 50% reduction that the Austrian National Bank estimates will lower inflation by 0.5 percentage points one‑off. The move, welcomed by the Austrian Retail Association, is intended to provide lasting relief to consumers and is expected to be passed on by retailers where possible.
