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BAO: Interest adjustment for deferral, suspension, entitlement, complaints and VAT

Tax News - 24 Mar 2023 | 1 minute read

Due to a further increase in the key interest rate of the European Central Bank by 0.50 percentage points, interest on deferrals, interest on suspensions, interest on claims (interest on claims and interest on credit notes), interest on appeals and interest on turnover tax will also increase.

The European Central Bank has increased its base rate with effect from 22 March 2023. As a result of the automatic adjustment, the base interest rate in Austria will also increase from 2.38 % to 2.88 %, as the base interest rate changes in accordance with section 1 of the Base and Reference Rate Ordinance in line with the interest rate applied by the European Central Bank to its main refinancing operations.

According to the Federal Fiscal Code (Bundesabgabenordnung, BAO), the amount of interest on deferrals, suspensions, claims, appeals and VAT depends on the base rate applicable at the time, with changes totalling less than 0.5 percentage points since the last change in the base rate being disregarded. Currently, these interest rates are uniformly 2 % above the base interest rate.

Therefore, as of 22 March 2023, the following effective interest rates will result in accordance with the BAO:

Legal basisInterest rate
Deferral interest *)section 212 (2) BAO4.88 %
Suspension interestsection 212a (9) BAO4.88 %
Entitlement interestsection 205 (2) BAO4.88 %
Interest on complaintssection 205a (4) BAO4.88 %
VAT interestsection 205c (5) BAO4.88 %

*) until 30.06.2024 pursuant to section 323c (13) BAO.

The Decree of the Federal Ministry of Finance (Bundesministerium für Finanzen, BMF) of 16 March 2023 on this was published in the Findok on 17 March 2023; this replaces the BMF decree of 3 February 2023.

If the above-mentioned interest does not reach an amount of EUR 50.00 in each case, it is not to be determined.