A new Digital Tax Act brings a 5% tax on online advertising services provided by large companies. It will enter into force on 1 January 2020.
Based on the EU's proposed (and meanwhile abandoned) digital services tax, Austria has now unilaterally introduced a digital advertising tax, to enter into force on 1 January 2020. This tax is to supplement the existing advertising tax on conventional media (radio, TV or print media). The new tax (with a rate of 5%) is to be levied on online advertising services offered by certain large enterprises in Austria. The services provided must have a domestic nexus (i.e., the ad has to be called up from a device with a domestic IP address and its content has to address Austrian customers). Also, the online advertising services provider has to reach certain thresholds (i.e., worldwide revenues of at least EUR 750 million in a financial year and revenues in Austria of at least EUR 25 million, but the latter only from the provision of online advertising services).