Increase in the input tax allowance from 1 April 2024
St. Pölten (OTS) – The horse industry is an important economic, social, tourism and leisure factor in Austria. Horse keeping, horse breeding and riding are of great importance for domestic agriculture and are an important mainstay for family farms. In order to relieve the burden on horse boarding businesses, the Lower Austrian Chamber of Agriculture, the Association of Lower Austrian Horse Breeders and “The Rural Riders and Drivers in Lower Austria” have called for an update of the input tax flat rate. At the initiative of the Lower Austrian Chamber of Agriculture, negotiations with the Federal Ministry of Finance began at the beginning of 2024 together with the Austrian Chamber of Agriculture and have now been successfully concluded. The increased input tax flat rate of 31 euros per horse boarding per month will apply from the 2nd quarter of 2024.
Sales from boarding horses are generally subject to the standard tax rate of 20 percent sales tax. According to the Horse Flat Rate Ordinance, agricultural and commercial horse boarding businesses have the option of deducting the average input tax burden per horse boarded and month for self-produced feed, bedding and the like. This flat-rate input tax deduction has been 27 euros per horse boarded and month since the second quarter of 2020. The wave of inflation that has posed major challenges for businesses since this last increase has made a corresponding adjustment of the input tax flat rate based on current calculations urgently necessary. This was also clearly shown by the current calculations of the Lower Austrian Chamber of Agriculture on the input tax burden.
“Horse husbandry in Austria is an important economic and social factor. Especially in difficult times, horse husbandry is an opportunity for our local family farms. But in order to make the most of this opportunity, appropriate framework conditions are needed,” says Andrea WagnerVice President of the Lower Austrian Chamber of Agriculture, is convinced and continues: “This adjustment of the input tax flat rate just before the summer break could only be achieved through the unique cooperation between agriculture, breeding and rural riders and drivers in Lower Austria. The Austrian Chamber of Agriculture was also on board with the negotiations. If we assume, for example, that the option of a flat-rate input tax deduction is used for every horse stabled in Austria, the increase in the input tax flat rate by 4 euros means a relief for domestic horse stables of over 3 million euros per year.”
The amendment to the Horse Flat-Rate Ordinance was published on June 26, 2024 in Federal Law Gazette II No. 165/2024 and applies retroactively from April 1, 2024. In addition to the increase in the flat-rate input tax deduction to 31 euros per horse per month, another change is the increase in the sales limit according to Section 1a of the Horse Flat-Rate Ordinance from 400,000 euros to 600,000 euros.
Inquiries & Contact:
IN Christina Spangl,
Press Officer Chamber of Agriculture Lower Austria
Tel.: 05 0259 28101,
Mobil: 0664 60 259 28101,
E-Mail: christina.spangl@lk-noe.at
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