Increase in VAT rates from 01.01.2024

With the referendum held on September 25, 2022, the increase in value-added tax rates was approved.

Effective from January 1, 2024, the value-added tax rates will increase as follows:

The tax rate increase must be applied and invoiced based on the rendered service or received prepayment. The determining factor for applying the new rates is not the invoice/payment date but rather the date or period of the service provided.

Hence, any (pre)invoiced services or partial services that are actually rendered after December 31 must already include the new rates. The same principle applies, mutatis mutandis, to prepayments made or received. Invoices issued in 2024 for retroactive services will still be subject to the old tax rate.

For services spanning multiple periods, such as subscriptions and service contracts, a pro-rata allocation between the old and new tax rates must be made. It should be clearly indicated which services were billed at which rate for each period.

This allocation also applies to construction or assembly services that extend across the year-end. If such an allocation is not clearly identifiable and verifiable, the law requires a complete billing at the new rate. Therefore, it is recommended to delineate the services until December 31, 2023, through a detailed interim invoice to ensure their unambiguous billing at the old rate.

The declaration for the new rates can be made for the first time with the VAT settlement of the 3rd quarter of 2023 or the 2nd semester of 2023, respectively. Retroactive corrections are possible until the VAT finalization of 2023 (deadline of a maximum of 240 days after the end of the fiscal year).