Austria has become another European state to announce digital tax measures. Austria intends to implement a 5 per cent digital advertising tax along with tax compliance measures targeting online booking and retail platforms.

A statement from Austrian Finance Minister Hartwig Löger and State Secretary Hubert Fuchs notes that the Austrian government expects to raise €200 million in annual revenue from digital tax measures. The 5 percent tax will apply to online advertising revenue of large companies with €750 million in annual global sales if €25 million of those sales are linked to digital advertising sales in Austria.

The package also comprises compulsory VAT for digital retail platforms. Previously, parcel deliveries from third countries were exempt from VAT where the value of the goods was €22 or less.