AustriaManual

VAT basics in Austria

The Value Added Tax (VAT) in Austria is known as Umsatzsteuer (USt) in their local language.

What are the VAT rates in Austria?

The VAT rates in Austria are the following:

  • Standard rate: 20% (19% in the regions of Jungholz, Mittelberg)
  • Reduced rates: 10% and 13%

Austria has opted for the reduced VAT rates on a number of items allowed by the VAT Directive.

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 contact us

  • Foodstuff
    10 and 13%
  • Water supplies
    10%
  • Pharmaceutical products
    10%
  • Medical equipment for disabled persons
    20%
  • Children´s car seats
    20%
  • Passenger transport
    10% and 13%
  • Books
    10%
  • Books on other physical means of support
    10%
  • Newspapers
    10%
  • Periodicals
    10%
  • Admission to cultural services (theatre, etc)
    13%
  • Admission to amusement parks
    20%
  • Pay TV / cable
    20%
  • TV licenses
    10%
  • Writers / composers
    13%
  • Hotel accommodation
    10%
  • Restaurant and catering services
    10%
  • Restaurants
    10%
  • Medical and dental care
    Exempt and 20%
  • Repair of shoes and leather goods
    10%
  • Repair of clothing and household linen
    10%
  • Hairdressing
    20%

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 here.
  • 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 here 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 here 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.

You can find an overview of the statute of limitations in Europe under the following link.

 

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