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

Tax News - 21 Jun 2023 | 1 minute read

Due to further increases in the key interest rate of the European Central Bank by a total of 0.50 percentage points, interest on deferrals, interest on suspensions, interest on claims (interest on arrears and interest on credits), interest on appeals and interest on value added tax have also increased.

The European Central Bank raised its key interest rate by 0.25 percentage points in May and again by 0.25 percentage points in June, with effect from June 21, 2023. As a result of the automatic adjustment, the prime rate in Austria will also increase from 2.88 % to 3.38 %, as the prime rate changes in line with the interest rate applied by the European Central Bank to its main refinancing operations in accordance with section 1 of the Base and Reference Rate Regulation.

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

As of June 21, 2023, the following effective interest rates will therefore result in accordance with the BAO:

Legal basisInterest rate
Deferral interest *)section 212 (2) BAO5.38 %
Suspension interestsection 212a (9) BAO5.38 %
Entitlement interestsection 205 (2) BAO5.38 %
Interest on complaintssection 205a (4) BAO5.38 %
VAT interestsection 205c (5) BAO5.38 %

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

The relevant BMF decree of 16 June 2023 was published in the Findok; this replaces the BMF decree of 13 March 2023.

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