Austria

VAT Basics

VAT Rates by goods and services in Austria

The standard VAT rate is 20% (19% in the regions of Jungholz, Mittelberg). The standard VAT rate generally applies for all goods and services for which no exemption, 0% or one of the reduced VAT rates is foreseen.

The first reduced VAT rate is 13%. This reduced rate applies to tickets to sport and cultural events, domestic flights, pet food, artists' services or products, among others.

In addition, there is a reduced VAT rate of 10%. This reduced rate applies to most food products, books, hotel accommodations, rentals for residential purposes, newspapers books and magazines, restaurants, passenger transport, pharmaceuticals, repair of certain products, among others.

Supplies and services at 0% are the standard supplies, such as exports or intra-Community supplies.

Finally, some supplies are VAT exempt, such as health services and financial services, among others.

To confirm the VAT rate applicable to your product or service in Austria, we recommend that you .

‍

VAT Deduction Limits in Austria

Generally, Austrian VAT can be deducted as long as it is incurred for business purposes and all formalities are met.

The following deduction rules apply:

• Input VAT for the purchase, lease, repair, and fuel for vans and trucks, and certain cars used for business purposes and without CO2 emissions, is 100% deductible. Find official information .
• Input VAT for hotel accommodation is 100% deductible.
• Entertainment costs for business partners, including restaurant, when related to marketing purposes is 100% deductible.
• Input VAT on training, conferences, fairs and exhibitions usually is 100% deductible.
• Input VAT for books is 100% deductible.
• Input VAT for mobile phone expenses is 100% deductible.
• Input VAT for business gifts when allowed for direct tax purposes.
• Input VAT for taxis and other travel expenses is 100% deductible.

Find  official information about input VAT deduction.

Austrian tax authorities encourage to only accept invoices that contain both the name and address of the company providing the service and the company receiving it, as well as a detailed description of the delivery or service purchased. This way, you will be on the safe side when deducting input VAT. Check the Austrian authorities´ website for more information  about invoicing obligations when deducting VAT.

‍

Statute of limitations

The statute of limitations is the period in which the authorities can go back to investigate a tax liability. This is normally the same period in which a taxpayer can go back to request a tax credit.

The statute of limitations in Austria is five years. This means that both the taxpayer and the tax authorities can request the review of previous reporting periods up to five years prior to the current year. However, in case of tax evasion, the tax authorities can go back up until ten years.

Similarly, the time limit for taxpayers to request a tax credit is five years in Austria.

‍

VAT registrations and simplifications in Austria

When do I need an Austrian VAT number?

Generally, a foreign business must register for VAT in Austria as soon as a taxable supply is made. The following are the typical examples of taxable transactions:

• Domestic supply of goods not reverse charged: A supply of goods located in Austria where the supply is not subject to reverse charge requires a VAT registration of the supplier.
• Supply of services not reverse charged: Foreign businesses supplying services on which Austrian VAT is due must register for VAT. These services are exceptional, as the general B2B rule applies.
• Export: Exporting goods to non-EU countries requires a VAT number before the export is made.
• Intra-Community acquisition: Acquiring goods from another Member State where all conditions for intra-Community movements are met requires the customer to register for VAT.
• Intra-Community supply: Supplying goods from another Member State is also a taxable transaction that obliges the supplier to register for VAT.
• Distance sales: When applicable in case the Seller has not joined OSS. See the  for more information.

‍

A backdated registration is possible in Austria. Such backdated registration is required when a business applies for an Austrian VAT number late. In this case, all missed VAT returns are due, and, if applicable, all corresponding VAT payments should be made.

There is no registration threshold for foreign non-established companies in Austria. For these businesses, registration is required before the first taxable transaction is made in Austria. Small established companies can avoid a VAT registration if the annual turnover is below the exemption threshold of EUR 35,000: when under the registration threshold, Austrian small businesses do not have to charge VAT and therefore do not have to pay sales tax to the tax office; also, there is no input tax deduction.

Established small businesses can voluntarily register for VAT purposes in Austria and start charging VAT in their sales, even if the total turnover is below the registration threshold.

Check  for more information about the exemption threshold for small established businesses in Austria.

Input VAT incurred before the VAT registration may be deductible concerning purchases of goods or services directly related to the economic activity (not for private use). In case a foreign business is willing to deduct VAT incurred while not VAT registered, normally , a retroactive VAT registration is required. Careful because it is only possible to reclaim the VAT in the year in which it was incurred. In case no taxable transactions occurred during the year on which input VAT was incurred by the foreign business, such VAT shall be recovered via the EU VAT refund mechanism or 13th Directive.

A limited VAT registration does not exist in Austria. Such registration refers to obtaining identification purposes and obligations outside VAT returns (e.g. Submitting ESL and Intrastat returns). Austrian VAT registration always implies submitting VAT returns, irrespective of the transaction flow performed by the taxpayer

Find  more information about the Austrian VAT numbers and VAT registration forms.

‍

Fiscal representative requirements in Austria

Non-EU businesses must appoint a fiscal representative when registering for VAT purposes in Austria. The tax representative must be established in Austria.

EU businesses can register directly for VAT purposes in Austria. This means that the company’s legal representative can sign the registration form without any local Austrian involvement.

A fiscal representative or customs agent may also be required when performing certain customs-related transactions.

‍

VAT groups in Austria

Where more than one taxable persons are closely bound by financial, economic, and organisational links, these companies are automatically considered as part of a VAT group and are treated as a single taxable person for VAT purposes in Austria. A VAT group implies a company and one or more controlled entities. VAT groups are also known as Organschaft controlling in the local language.

As regards the VAT group conditions, financial links exist when the same person or business directly or indirectly holds more than 75% of the shares of a member – from 50% to 75% of shares ownership it might be considered to meet the VAT group criteria depending on the rest of conditions. Organisational links exist when the management of the controlled entities is entirely dependent on the controlling entity. Economic ties exist where the activity of the controlled entities.

In addition, the following VAT grouping rules apply in Austria:

• Foreign companies may be considered as part of an Austrian VAT group, but only for the part of the business that is developed in Austria.
• VAT grouping is mandatory in Austria.
• The VAT group is formed immediately if the conditions are met.
• VAT groups submit a single VAT return, and only the controlling entity is registered at the tax office for VAT purposes.
• Intra-group transactions are disregarded for VAT purposes. Still, they must keep records of these transactions.
• Every group member is jointly and severally liable for the VAT debts and penalties of the entire group.
• There is no minimum period for a VAT group in Austria. It depends exclusively on whether the conditions are met or not.

‍

Consignment and Call-off stock in Austria

The EU introduced an EU wide simplification for call-off stock scenarios that all EU Member States must implement. This simplification allows businesses to operate under a consignment stock structure without having to VAT register in the destination country. Austria has implemented this simplification.

‍

Austrian Bad Debt Relief

Bad debt relief is available in Austria.

When a customer has not paid an invoice on which VAT has been accounted by the supplier in its VAT return, and this debt is not recoverable, this is considered a bad debt. Taxpayers may recover the VAT amount from bad debt.

In Austria, it is necessary that a court decides on a case-by-case basis that the debt is not recoverable. The insolvency of the debtor, or when the debtor’s assets do not cover the outstanding debt are usual cases where the debt is considered non recoverable.

When the debt is considered non recoverable, the supplier may adjust the output VAT on the VAT return. The supplier does not need to issue corrective invoices, or inform the customer; however, the supplier’s tax office must inform the customer’s tax office about this adjustment, so they ensure that the input VAT linked to the same transaction is also adjusted.

‍

Austrian Import Deferral and Postponed VAT Accounting

Normally, companies must pay import VAT together with customs duties upon importation to the Customs authorities in Austria.

However, Austria has introduced the postponed import VAT accounting mechanism. When the importer is VAT registered in Austria, the payment of import VAT may be postponed and paid to the tax authorities via the VAT return. This simplification is optional in Austria. Taxpayers making imports must report as payable and deductible the import VAT in the same reporting period. The reporting period must correspond to the same accounting period during which Customs issued a customs bill or customs receipt. The following conditions apply:

• Customs declaration containing import VAT
• The importer is a company registered for VAT in Austria
• The company imports goods for its own business
• The company opts within the customs declaration form for postponed accounting of import VAT.

‍

Austria has not implemented the import VAT deferral.

Find  the official information about import VAT and postponement of import VAT.

‍

Austrian Customs warehouse and VAT warehouses

Customs or bonded warehouses are available for goods that have not cleared customs in the EU (T1). VAT and excise duties are not due when these goods are directly placed in the Customs warehouse. As soon as they exit this regime, these amounts are due. Sales within the customs warehouse are zero-rated.

Find here the official information about customs warehouse.

VAT warehousing is not available in Austria.

‍

Special VAT Schemes in Austria

Cash accounting scheme in Austria

‍

Country specifics:

• The cash accounting regime in Austria is also known in the local language as Istbesteuerung and "Besteuerung nach vereinnahmten Entgelten"
• The cash accounting regime is available in Austria for:

• Farmers and foresters who are not required to keep accounts.
• Freelancers (regardless of the amount of their turnover and the legal form).
• Energy generation and waste disposal companies and
• All other businesses when the total turnover does not exceed EUR 110,000 in the past two years.

‍

TOMs or travel agencies regime

Check our dedicated article about TOMS.

If conditions are met, travel companies may have to charge VAT on their profit margin taxation concerning journeys within the European Union. The taxable margin is the difference between the total amount paid by the traveler or customer (VAT excluded) and the actual costs for goods and services that benefit the traveler directly, and that were purchased from other taxable persons by the travel company. The margin is subject to VAT at the standard rate.

• Austria applies the travel agencies regime for both B2B and B2C transactions.
• Supplier must be established in Austria.
• To understand the supply is a travel service, the supplier must provide a package of several individual services including transport or accommodation. However, in case it is the accommodation service what is provided by the organizer supplier, it is possible to apply the travel scheme on that supply.
• Supplier must keep records of transactions performed, containing the amount payable by the customer and the amounts payable to the service providers.
• When the service is directly provided by the supplier, this is not subject to the special regime.

‍

Reverse Charge in Austria

Reverse charge for non-established companies in Austria

According to art 194 of the VAT Directive, Member States may implement an optional reverse charge on domestic supplies made by non-established businesses. Austria has introduced this optional reverse charge for certain domestic supplies of services.

Domestic reverse charge applies when a non-established company supplies services to a taxable or legal person in Austria. The exceptions to this general rule are i) admission fees to events and ii) the use of toll roads.

‍

Therefore, in case the customer does not have a VAT number Austria, the reverse charge does not apply.

Also, domestic reverse charge applies when a non-established company makes the following specific supplies to a VAT registered company in Austria:

• gas through a natural gas system or
• electricity
• heat or cooling energy through heating and cooling networks.

‍

In case the customer does not have a VAT number Austria, the reverse charge does not apply.

Find  the official information about reverse charge in Austria published by the tax authorities.

VAT withholding regime applies for the supplies made by foreign companies where the reverse charge mechanism does not apply, for example, in the supplies of goods, the supply is subject to the special VAT withholding regime, except for admission to events fee. Find  the official information about the VAT withholding regime in Austria published by the tax authorities.

‍

Reverse charge on B2B Services in Austria

Article 196 of the VAT Directive requires the reverse charge mechanism on all services subject to the B2B rule introduced in art. 44 of the same Directive. The B2B rule locates the transaction where the business customer is located. In case the customer is a private individual, B2C rules locate the transaction where the supplier is located.

According to the general B2B rule, any business not established in Austria supplying services to an Austrian registered customer will not charge any VAT and the transaction will be reverse charged by the customer.

There are however a number of exceptions to this rule. Where these exceptions apply, reverse charge may still be applicable in Austria:

• Services connected to immoveable property are located where the property is located.
• Passenger transport services will be located where the transport takes places (apportioned if necessary).
• Catering services are located where the catering takes place.
• Short term leasing of means of transport are located where the vehicle put at the disposal of the customer.
• Access to conferences, fairs and exhibitions is located where the event takes place.
• Austrian reverse charge on specific goods and services.

‍

Austrian reverse charge on specific goods and services

Domestic reverse charge may also apply to certain goods and services under different conditions. This regime is often introduced on products that are more likely to be used for VAT fraud purposes.

Austrian domestic reverse charge applies to the following list of supplies:

• Construction services and subcontractor’s construction services. Construction services include manufacture, repair, maintenance, cleaning, modification or removal of buildings. This also applies to the leasing of workers if the workers provided carry out construction work.
• Goods provided as security by one taxable person to another in execution of that security, the supply of goods following the cession of the reservation of ownership to an assignee and the exercise of this right by the assignee and the supply of immovable property in the course of the judicial sale.
• Used material, scrap, industrial and non-industrial waste, recyclable waste, etc., and scrap gold.
• Greenhouse gas emission certificates
• Mobile communication devices, video consoles, notebooks, tablet PCs and certain electronic integrated circuits if the amount is at least EUR 5,000.
• Certain metals, and investment gold.

You can find  the official information about reverse charge on specific goods and services published in the tax authorities’ website.

‍

VAT Returns in Austria

Frequency of VAT Returns in Austria

All registered businesses in Austria must file VAT returns monthly or quarterly.

Austrian VAT returns are filed monthly when the taxable turnover for the year is estimated to exceed EUR 100,000.00. If the estimated turnover is below this amount, VAT returns may be filed on a quarterly basis.

In the year of VAT registration (first assessment year), the submission of the advance return depends on the planned turnover in the opening year – estimated turnover of sales included on the registration form. In this case, the taxpayer may remain submitting monthly VAT returns.

The tax year is always the calendar year. A different fiscal year cannot be used.

‍

If the client exceeds the threshold of EUR 100,000, they will have to make monthly VAT returns in the next year. Normally the tax administration sends a notification, but not in each case. However, the tax administration makes a change in their system, and it is not possible to send quarterly VAT returns next year.

On the other side, you can send monthly VAT returns even if the threshold was not exceeded. The quarterly VAT returns are a simplification to ease the compliance obligations for smaller companies.

Separately, companies with an annual turnover that does not exceed EUR 55,000 (until 31 December 2024: EUR 35,000) are considered small businesses subject to a special regime. In principle, these companies do not need to submit VAT returns – neither the advanced VAT return nor the annual VAT returns. However, in some cases these companies are required to submit the annual VAT return and pay VAT on sales. Find additional information on the

‍

Due Date of Austrian VAT Returns

The following due dates apply to Austrian VAT returns:

‍

‍

If the day of submission is a Saturday, Sunday or public holiday, the due date shifts to the following working day.

Concerning the annual VAT return, the deadline for submitting the tax return can be extended upon a justified request, on a case by cases basis. Businesses represented by a "tax representative" usually has more time to submit the tax return.

• Find  the deadlines published by the Austrian tax authorities for submitting advance VAT returns.
• Also, find  the deadline for the Annual VAT return submission.
• Finally, find  the following official confirmation concerning deadlines: Taxes that are due on a Saturday, Sunday, public holiday, Good Friday or on December 24 are only payable on the next working day.

‍

VAT Payments in Austria

The VAT payment is due within the same deadline as for the submission.

VAT payments must be made via bank transfer to the competent Austrian tax office. It is important to double-check the bank details before making the payment and ensure that the payment reference included is correct.

The payment reference when making the bank transfer must include the VAT registration number of the taxpayer (local tax number, also known as Steuernummer) and the reporting period. It is also recommended to add the VAT amount to pay for the period, as stated on the tax authorities’ website.

The bank details of tax office of Graz-Stadt can be found . This tax office is generally competent for foreign companies VAT registered in Austria. Also, find  the bank account details for other tax offices, as well as further information about tax payments in Austria.

‍

VAT Refunds in Austria

A VAT credit is not automatically refunded by the tax authorities. When you are in credit position (excess of input VAT) in a reporting period in Austria, you may choose if carry forward that amount to the following reporting period or request a refund to the tax authorities.

The VAT refund can be requested by filling an application for repayment with the Austrian authorities, indicating the amount of the credit to be repaid and the bank account details to which the repayment should be made (no period foreseen). It may take up to 6 months after the request has been filed until the credit is repaid. A request for reimbursement of the credit may trigger an audit.

However, if there is any other outstanding tax due, excess input VAT will be reduced at such amount.

The specific procedure varies depending on whether you have the Austrian electronic services set up, or you are submitting paper VAT returns:

• E-filing set up: if you can access your profile in FinanzOnline, then you will be able to check the tax credit that is accumulated on your tax account. You can also request the refund of this VAT amount by submitting a VAT refund claim electronically.
• Paper VAT returns: you need to indicate the refund requested in the VAT return form. Additionally, you will need to complete a letter claiming the refund of the excess of input VAT and send it to the competent tax office.
• Find  the official information about input VAT published by the Austrian tax authorities.
• Find  official information about the requirement of providing an IBAN and BIC account for VAT reimbursements.

‍

Nil and Corrective VAT Returns in Austria

Nil VAT returns

If there are no transactions to be reported in a given period, a nil VAT return must be submitted. There are no specific requirements other than including 0.00 in the final VAT position.

Corrective VAT returns

Where there is a change in the output or input VAT reported in a given period, a corrective VAT return must be filed replacing the return previously submitted. Therefore, a completely new VAT return must be completed and submitted for the same reporting period.

If a corrective VAT return is submitted before the deadline for submission, only the last VAT return submitted will be considered by the authorities, and no penalties should be imposed. However, in case of late submission of a corrective VAT return, late filing penalties may apply.

Based on the specific error and impact on the VAT position, you may consider filing a voluntarily self-disclosure to the tax office.  It is recommended to include an explanatory letter about the amendment.

Credit notes on transactions without VAT, for example, on intra-Community supplies can be reported in the annual VAT return in case no impact on the VAT payment is given. However, the taxpayer may also file a corrective VAT return.

If you submit your new VAT return via e-filing, then you can submit a corrective VAT return for a reporting period already filed. You can do this only once. The program will not allow you to submit any more consecutive corrective returns for the same reporting period; in such case, you should use the VAT return in paper form.

Similarly, if you submit your VAT returns on paper form, you just need to complete again a VAT return for the reporting period you would like to correct.

‍

VAT Penalties in Austria

‍

Austrian Tax Authorities Contact

The competent tax office for foreign companies is Finanzamt Graz-Stadt. Find below the address and other contact details of this tax office.

Austrian tax office Graz-Stadt department

Business assessment teams Foreigners departments

Conrad von Hötzendorf-Straße 14-18

A-8010 Graz

Phone: +43 (0) 50233 333

Fax: +43 (0) 50233 5938041 ( BV 31) or +43 (0) 50233 5938042 ( BV 32)

• Emails: post.fa68-bv11@bmf.gv.at ; post.fa68-bv12@bmf.gv.at ; anton.peklar@bmf.gv.at ; elfriede.gladitsch@bmf.gv.at
• Check  and  the contact details of the Finanzamt Graz-Stadt published on the official websites of the Austrian tax authorities.
• Find more information  about other tax offices in Austria.

OSS contact details

• Email: service.oss@bmf.gv.at
• Phone: +43 50 233 538741

‍

ESL returns in Austria

Due date and frequency of ESL returns in Austria

ESL returns for the intra-Community supplies of goods are filed on a monthly or quarterly basis. The frequency of filing will normally match the frequency applicable for the VAT returns submission (monthly or quarterly).

Austrian ESL returns are due by the end of the month following the reporting period. If the due date falls on a Saturday, Sunday, or public holiday, the date is shifted to the next working day.

It is important that the information reported on the VAT return and the ESL return matches. Otherwise, the tax authorities may initiate a verification procedure and request further examination and clarifications from the taxpayer.

‍

Nil and corrective ESL returns in Austria

In case there are no transactions to be reported in a given period, a nil ESL return is NOT required in Austria.

If you have declared incorrect details in an Austrian ESL return, you should file and submit a corrective ESL return for the same reporting period.

ESL returns can be corrected electronically if you have the e-filing set up. Similarly, if you submit your ESL returns on paper form, you just need to complete again a VAT return for the reporting period you would like to correct.

Based on the specific error and correction, you may consider filing a voluntarily self-disclosure to the tax office.  

‍

Penalties for late ESL returns in Austria

If you miss the submission of an ESL return, the tax office may impose a penalty up to EUR 5,000.

If you submit an ESL return late, the tax office may impose a penalty of up to 1% of the total of all assessment bases to be reported (maximum amount EUR 2,200).

‍

Intrastat returns in Austria

Frequency of Filing and Due Date of Intrastat Returns in Austria

Like in most EU countries, Austrian Intrastat returns are filed monthly. They follow the calendar month. The due date to file these returns is the 10th working day of the following month. The amounts must be reported in Euro currency.

Austrian Intrastat Thresholds

The following annual Intrastat thresholds apply in Austria (calendar year):

‍

Arrivals: EUR 1,100,00

Dispatches: EUR 1,100,000

Arrivals: EUR 12,000,000

EUR 12,000,000

‍

Austria requires the submission of a detailed Intrastat return when exceeding the threshold of 12 million on intra-Community dispatches or arrivals. The detailed Intrastat return implies introducing the individual calculation of the statistical value.

These submission thresholds are computed annually according to the calendar year. Once the threshold is exceeded, a calendar year needs to be completed under the threshold in order to stop filing these returns. For example, if a company exceeds the threshold in March 2023 on arrivals, Intrastat returns for arrivals are due until December 2024. These thresholds are calculated according to the invoice value.

Reporting of Specific Scenarios in Austria

The transactions reported in the Intrastat return are usually standard sales from one taxable person to another. However, several scenarios have specific reporting requirements.

Each type of movement of goods is reported in Intrastat returns according to a “Nature of transaction code.”  For example, code 11 is used for a standard sale between two parties with change of ownership on the goods traded; also, distance sales of goods have a specific nature of transaction code (code 12).

You will find the updated transaction codes in the official .

Nil and Corrective Intrastat Returns in Austria

If there are no transactions to be reported in a given period, a nil Intrastat return must be filed in Austria.

Concerning corrective returns, data reported in the Intrastat return that was incorrect at the time when the return was submitted must be corrected.

The reporting period to be corrected is the month to which the correction relates. Intrastat returns that were submitted can be either deleted (option “D – deletion of declaration”) or replaced (option “R – replacement of declaration).

To simplify the reporting of Intrastat returns, a corrective return is only required in the following cases:

• Data regarding the concepts “invoiced amount” or “statistical value” respectively have to be corrected only, if the original value should change by an amount of over EUR 1.000.
• Information regarding the fields “net mass” or “supplementary unit” respectively have to be corrected only, if the original quantity should change by 5% after correction.
• Data contained in other fields has to be corrected only if the invoiced value of the relevant CN8 code exceeds EUR 1.000.

Find more information about correcting Austrian Intrastat returns in Austria in the Intrastat guidelines and RTIC Help guidelines published by the .

Intrastat Penalties in Austria

If you do not submit an Intrastat return, you will first receive a reminder, after a first reminder, you will receive an  from Statistics Austria with a request to report. If this request is still not attended, Statistics Austria will forward this infringement to the magistrate or the district authority. These authorities can subsequently impose penalties.