BAO: Interest adjustment for deferral, suspension, entitlement, complaints and VAT
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 base rate by 0.25 percentage points on 2 August 2023 and again by 0.25 percentage points in September with effect from 20 September 2023. As a result of the automatic adjustment, the prime rate in Austria will also increase from 3.38 % to 3.88 %, 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 September 20, 2023, the following effective interest rates will therefore result in accordance with the BAO:
| Legal basis | Interest rate | |
|---|---|---|
| Deferral interest *) | section 212 (2) BAO | 5.88 % |
| Suspension interest | section 212a (9) BAO | 5.88 % |
| Entitlement interest | section 205 (2) BAO | 5.88 % |
| Interest on complaints | section 205a (4) BAO | 5.88 % |
| VAT interest | section 205c (5) BAO | 5.88 % |
*) until 30.06.2024 according to section 323c (13) BAO.
The relevant BMF decree of 14 September 2023 was published in the Findok; this replaces the BMF decree of 16 June 2023.
If the above-mentioned interest does not reach an amount of EUR 50.00 each, it is not to be determined.
