Tax & Legal News in English September 2025

European Clean Industrial Deal

With the Clean Industrial Deal (CID), the European Commission initiated an ambitious framework to support the transformation of energy intensive European companies towards a more sustainable, clean and competitive industry in the face of persistently high energy costs, growing environmental demands, and unfair global competition.

 The focus lies especially on energy-intensive sectors such as steel, metal, paper, chemicals and construction materials, which require tailored measures for decarbonization and competitiveness due to high energy costs and partly unfair global competition. Central elements include affordable energy, creation of high-quality jobs, enabling regulatory environments, and the promotion of the circular economy. Another special emphasis lies on the Clean-Tech-Sector due to its high relevance for European competitiveness.

 A key innovation is the establishment of the Industrial Decarbonization Bank with EUR 100 billion in funding to support pilot projects with high potential regarding the decarbonization of European industries. This funding comes from multiple EU sources including the ETS, InvestEU, member states, and the European Innovation Fund. Overall, the CID aims to strengthen the resilience of European industry, promote clean technology and ensure long-term competitiveness in the face of global pressures. Regular calls for projects will start in 2026, while an initial pilot call  focusing on the decarbonization of key processes across various industries, such as metal processing, chemicals and building materials, non-ferrous metals, paper, steel, etc., is scheduled to be published in 2025.

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Photovoltaic systems from a tax law perspective for individuals

In recent years, numerous photovoltaic systems have been installed, which leads to various tax implications for individuals, depending on the general conditions. For example, numerous special tax regulations must be observed. From an income tax perspective, the supply of electricity to energy supply companies is exempt from income taxation up to 12,500 kWh per year, provided the PV system does not exceed certain size limits. From a VAT perspective, the supply of electricity is generally an economic activity and the individual is classified as a taxable Person, but in the standard case either the supply of electricy is excempt from VAT or the reverse charge system is applicable. However, it should be noted that under certain conditions the right of deduction could be limited to a proportional deduction or could be excluded.

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New developments for project developers of electrolysis plants under the Electricity Industry Act

Under the planned ElWG, electrolysis plants will in future be subject to the uniform legal regime of electricity law. This means that a plant license under electricity law will be required. Distinctions based on the type of electrolysis plant and inconsistent administrative practices at federal level will thus largely become a thing of the past.

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ECJ defines the term “end consumer”

In its latest ruling, the ECJ clarifies its previous statements regarding its 2022 decision and explains that each transaction (invoice) must be examined to determine whether a tax liability exists in accordance with Section 11(12) of the Austrian Value Added Tax Act (UStG). It also defines the  term ‘end consumer’, which is to be interpreted narrowly, and explains that this refers to non-taxable persons who are not entitled to deduct input VAT. Under certain conditions, the ECJ also allows estimates for small-amount invoices, but these must be well-founded and comprehensible.

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New VAT regulations for virtual participation fees 

Austria has introduced new VAT regulations for virtual participation fees for cultural, sportive, entertaining, educational or scientific events. If the participation fees are charged to private individuals (non-entrepreneurs for VAT purposes), the place of performance is the place where the  recipient is located. Organizers of such events need to determine where the participants are located in order to charge the correct VAT.

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Can a foreign employer without domestic establishment be held liable for wage tax?

In its decision dated 14 January 2025 (RV/3100842/2018), the Tax Appeals Court examined whether a foreign employer without a domestic establishment can be held liable for wage tax under Section 82 of the Austrian Income Tax Act (EStG), specifically in connection with Section 5(3) of the old version of the Double Taxation Agreement Relief Regulation (DBA-Entlastungsverordnung). The case involved the secondment of personnel by a UK limited company to its Austrian subsidiary, addressing tax liability in cross-border employment situations.

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Additional UBO-reporting obligations entered into force on 1 October 2025 

Additional UBO-reporting obligations entered into force on 1 October 2025. Nominee agreements have to be reported to the register even though the nominee agreement is not material for the beneficial ownership. When a nominee agreement exists, legal entities that were previously  exempt from the reporting obligations can no longer make use of this exemption and have to report any nominee agreements (regardless of their relevance to any beneficial ownership). The amended filing must be submitted to the register within four weeks of the new regulations taking effect. 

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