From 2025, food products can be supplied duty-free

Beginning in 2025, sales tax will not be charged on food donated to charities. This is what the new tax reform law, approved by the Finance Minister on Friday, provides Magnus Brunner (ÖVP) was sent for evaluation. There are some benefits for taxpayers.

One of them is tax exemption for alms. This is possible because the relevant EU legal basis for sales tax has changed. In particular, according to the review proposal, tax exemption will be introduced in future for food donations to organizations pursuing charitable objectives.

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Facilitate employee evaluation without application

Further simplification should be made for employee assessment without application, which allows payment of tax debt without submitting a tax return, under certain conditions. Applicable from assessment year 2024, existence of compulsory assessment will no longer be a hindrance. For example, if an employee works for two different employers in a year, this does not exclude automatic payment of the tax credit.

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A companion to early workforce participation

The start-up will be added to the employee participation model introduced at the beginning of the year. Virtual business shares, so-called “phantom shares,” have been used as a reward and employee retention tool in recent years, particularly in startups.

For tax purposes employees are given a contractual right to profit sharing, wages included. Now such virtual shares can be transferred to new startup employee shareholders.

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Simplified invoicing

Innovations for small businesses are also planned from 2025: among other things, they will have the opportunity to issue invoices more easily, regardless of the displayed invoice amount. For example, information such as service recipient, running invoice number or UID number may be omitted.

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Finance Minister Bruner believes the new tax reform law will result in “simplifications, less bureaucracy and lower fees.”


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