VAT GUIDE IN AUSTRIA
AUSTRIAN VAT GUIDE FOR BUSINESSES
Value Added Tax (VAT), known in German as Mehrwertsteuer (MwSt) or Umsatzsteuer, is a key component of Austria’s taxation system. As a member of the European Union, Austria follows the general EU VAT framework. VAT in Austria is levied on the sale of goods and services within the country, as well as on imports. Businesses registered for VAT are required to charge VAT on their sales (output tax), while they can reclaim VAT paid on their purchases (input tax).
Foreign businesses conducting taxable transactions in Austria may also need to register for VAT, depending on the nature and scope of their activities.
The Austrian tax authority (Bundesministerium für Finanzen) oversees VAT compliance, including registration, invoicing, reporting, and payment obligations.
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VAT Rates
Who Needs to Register for VAT?
AustrianBusinesses must register for VAT if:
Their annual turnover exceeds EUR 35,000 (general threshold).
They carry out taxable supplies of goods or services in Austria.
They engage in intra-Community acquisitions.
They provide services where the reverse charge does not apply.
Foreign or Non-Established Businesses must register to VAT if:
They supply goods located in Austria at the time of supply.
They make intra-Community acquisitions into Austria.
They carry out distance sales to Austrian customers and:
Do not use the One-Stop Shop (OSS), and
Exceed EUR 10,000 per year for all EU-wide distance sales.
They provide services to private individuals (B2C) in Austria that are not covered by the reverse charge (unless reported via OSS).
Import goods into Austria and are the importer of record.
VAT Obligations
In Austria, businesses must register for VAT before carrying out any taxable activities. While Austrian-established businesses are only required to register once their annual turnover exceeds EUR 35,000, non-established (foreign) businesses must register regardless of turnover if they carry out taxable supplies in Austria.
Once registered, businesses are obligated to issue VAT-compliant invoices for their transactions. These invoices must include specific details such as the supplier’s VAT number, invoice date and number, names and addresses of both the supplier and customer, a clear description of the goods or services provided, the applicable VAT rate and amount, the date of supply, and a reverse charge indication if applicable.
Proper invoicing is crucial to ensure VAT compliance and the ability to claim input tax deductions.
Businesses registered for VAT in Austria are required to retain all relevant records—such as invoices, VAT returns, and accounting ledgers—for a minimum of seven years, ensuring they are accessible and available for audit by the Austrian tax authorities.
VAT Deadlines
Filing frequency
Monthly VAT returns if prior-year taxable turnover exceeded EUR 100,000.
Monthly from the start if a new business expects to exceed EUR 100,000 in its first year.
Quarterly returns if turnover is below EUR 100,000.
Annual VAT return required for all taxable persons.
Small taxpayers
If prior-year turnover did not exceed EUR 55,000 and payment is made on time, the periodic VAT return form need not be filed, unless the tax office requests it.
To claim a VAT refund, the return must be filed.
Deadlines
- Monthly/quarterly returns and payments are due by the 15th day of the second month following the period.
- If the due date falls on a Saturday, Sunday or public holiday, it shifts to the next working day.
Payments
Pay to the competent tax office’s bank account by the same deadline.
A credit balance on the tax account can be offset against the VAT due.
Preferred methods: electronic bank transfer (using “Finanzamtszahlung”) or “eps” via FinanzOnline.
If electronic transfer isn’t possible, other methods (e.g., payment slip) are accepted.
VAT Refund
Established Businesses
Businesses registered for VAT in Austria can usually reclaim input VAT on purchases related to their taxable activities.
The reclaim is done by offsetting input VAT against output VAT in the periodic VAT return (monthly or quarterly).
If input VAT exceeds output VAT in a period, the surplus can be: Carried forward, or Refunded directly, if claimed.
Foreign (Non-Established) Businesses
Foreign businesses with no fixed establishment in Austria may still claim a refund of Austrian VAT on local expenses — but only if: They do not make taxable supplies in Austria (except under the reverse charge mechanism), and they are not required to register for VAT in Austria.
Penalties for non-compliance
Late VAT Registration
No automatic penalty.
Up to EUR 5,000 may be imposed if the delay is intentional.
May trigger further fiscal criminal consequences depending on the case.
Late VAT Payment
2% penalty of VAT due for late payment.
Additional 1% added if unpaid after 3 months.
A third 1% penalty applies if still unpaid 3 months after the second penalty.
Late VAT Return Filing
Up to 10% of the VAT due, at the discretion of the tax authority.
Persistent non-compliance may be treated as tax fraud with more severe consequences.
Errors in VAT Returns
No specific penalty for honest mistakes.
General Austrian Fiscal Criminal Law may apply—case-by-case analysis required.
Failure to Update VAT Details
Not notifying changes to VAT registration may result in fines up to EUR 5,000.
Intrastat & ESL Penalties
Intrastat: Penalties for late, missing, or inaccurate submissions.
EC Sales List (ESL):
Up to 1% of intra-Community supply value, capped at EUR 2,200.
Failure to submit may result in a fine of up to EUR 5,000.
Receipt and Cash Register Violations
Non-compliance may lead to fiscal criminal investigations and monetary penalties.
Interest Charges
Interest rate: 2% above base rate.
No interest assessed if below EUR 50.
Interest may be claimed or imposed:
Claimed: For VAT credits, starting 91 days after return submission.
Imposed: For VAT debts, starting 91 days after due date or from 1 Oct of the following year (for annual returns).
Fraud
No specific VAT fraud penalty, but general fiscal criminal laws apply.
Tax advisors may also be liable in fraud cases.
Common VAT Terms
- Umsatzsteuer (USt) — Value Added Tax (VAT)
- Mehrwertsteuer (MwSt) — Another term for VAT (more commonly used in Germany but understood in Austria)
- Vorsteuer — Input VAT (the VAT a business can reclaim on purchases)
- Steuerschuldner — Tax debtor (the person liable to pay VAT)
- Reverse Charge-Verfahren — Reverse charge mechanism (where the buyer accounts for VAT)
- Steuerbefreiung — Tax exemption
- Steuersatz — Tax rate (e.g., 20%, 13%, 10%)
- Steuererklärung — Tax return (VAT return)
- Steueridentifikationsnummer or UID-Nummer — VAT identification number (VAT ID)
- Intrastat-Meldung — Intrastat declaration (reporting intra-EU goods movement)
- Zusammenfassende Meldung (ZM) — EC Sales List (reporting intra-EU B2B supplies)
- Kleinunternehmerregelung — Small business scheme (exemption threshold)
- Steuerpflichtiger — Taxable person (VAT-registered entity)
- Vorsteuerabzug — Input tax deduction
- Umsatzsteuer-Voranmeldung — Periodic VAT return (monthly or quarterl
