BAO / COFAG-NoAG: Interest adjustment for deferral, suspension, entitlement, complaints, VAT and refund
Due to the recent cut of 0.60 percentage points in the European Central Bank’s key interest rate, deferral interest, suspension interest, claim interest (back-demand and credit interest), complaint interest and sales tax interest have also decreased. Refund interest has also decreased in accordance with the COFAG Reorganisation and Settlement Act (COFAG-NoAG).
The European Central Bank lowered its key interest rate by 0.25 percentage points on 6 June 2024 and by a further 0.60 percentage points on 12 September 2024. As a result of the automatic adjustment, the base rate in Austria also fell from 3.88 % to 3.03 %, because according to Section 1 of the Base and Reference Rate Ordinance, the base rate changes in line with the interest rate applied by the European Central Bank to its main refinancing operations.
The amount of interest charged for deferment, suspension, claims, complaints and value added tax is dependent on the applicable base interest rate in accordance with the Federal Fiscal Code (BAO), whereby changes totalling less than 0.5 percentage points since the last change in the base interest rate are not taken into account. In view of the expired coronavirus-related reduction, interest on deferrals has been 4.5 percentage points above the applicable base rate again since 1 July 2024. The state aid-related reimbursement interest rates within the meaning of Section 16 (1) second sentence in conjunction with Section 14 (2) Z 2 COFAG-NoAG are 1 percentage point above the base rate. The remaining interest rates listed below are uniformly 2 percentage points above the base rate.
As of 18 September 2024, the following effective interest rates will apply in accordance with BAO and COFAG-NoAG:
| Legal basis | Interest rate | |
|---|---|---|
| Deferral interest | section 212 (2) BAO | 7.53 % |
| Suspension interest | section 212a (9) BAO | 5.03 % |
| Entitlement interest | section 205 (2) BAO | 5.03 % |
| Interest on complaints | section 205a (4) BAO | 5.03 % |
| VAT interest | section 205c (5) BAO | 5.03 % |
| Refund interest | section 16 (1) first sentence COFAG-NoAG | 5.03 % |
| Refund interest (relating to state aid) | section 16 (1) second sentence COFAG-NoAG | 4.03 % |
The relevant BMF decree of 13 September 2024 replaces the BMF decree of 9 August 2023.
If the interest mentioned above does not reach an amount of EUR 50.00 in each case in accordance with the Federal Fiscal Code, it shall not be assessed.
