Austria: Comprehensive VAT Country Guide (2026)

Austria: Comprehensive VAT Country Guide

1. Country Overview

• Austria, a member of the European Union since 1995, operates a Value Added Tax (VAT) system in line with the EU VAT Directive. VAT (locally known as Umsatzsteuer) was introduced in Austria in 1973, and the current VAT Act (1994) took effect upon EU accession in 1995 to implement the harmonized EU rules. As an EU member, Austria’s VAT regime follows the common principles set by EU law (Council Directive 2006/112/EC) for taxation of goods and services, with certain country-specific provisions. The currency in Austria is the euro (EUR), adopted in 1999, and VAT must be accounted for in euros. [vatcalc.com]
• Austria’s economy is highly integrated with the EU single market, so its VAT system is designed to facilitate both domestic and cross-border trade while preventing tax evasion. VAT is a major source of revenue for the Austrian government and is administered by the Federal Ministry of Finance and local tax offices (see Section 11). Businesses operating in Austria – whether local or foreign – need to understand the VAT rules on registration, invoicing, compliance, and reporting to meet their obligations and avoid penalties. In general, VAT is charged at each stage of the supply chain on taxable supplies of goods and services, with mechanisms (like input tax credits and reverse charges) to ensure the tax ultimately burdens final consumption in Austria. [eurofiscalis.com], [eurofiscalis.com]

2. Local VAT Term

• In the local language, VAT in Austria is called “Umsatzsteuer (USt)”, which literally means “turnover tax.” It is also sometimes referred to as “Mehrwertsteuer (MwSt)”, meaning “value-added tax,” although Umsatzsteuer is the official term used in legislation and by the tax authorities. These terms are used interchangeably to denote the Austrian VAT. All VAT returns, registrations, and official documents will use the term USt (Umsatzsteuer). [eurofiscalis.com]

3. VAT Rates

• Austria employs a standard VAT rate and several reduced rates, in accordance with EU rules that allow member states to apply one or two reduced rates on certain goods and services. It also has provisions for zero-rated supplies and exemptions in specified areas. Recent and upcoming changes to VAT rates are noted as well.

3.1 Standard rate

• The standard VAT rate in Austria is 20%, which applies to most supplies of goods and services not subject to a reduced or zero rate. This 20% rate is one of the higher standard rates in the EU. Virtually all general consumer products and services (unless listed under a reduced rate or exemption) are taxed at 20%. For example, standard-rated items include typical manufactured goods, electronics, appliances, clothing, furniture, professional services, etc. [marosavat.com]
• Special regional note: In two small administrative areas (the municipalities of Jungholz and Mittelberg), a slightly reduced standard rate of 19% is applied. These enclaves, located on the German border, have historical tax arrangements resulting in a 1% lower standard VAT rate, but this situation is unique and does not affect the rest of Austria. [marosavat.com]

3.2 Reduced rates (13% and 10%)

Austria has two reduced VAT rates of 13% and 10%, each covering specific categories of goods and services: [marosavat.com]

• 13% VAT rate: This first reduced rate applies to a variety of items, particularly in the entertainment, hospitality, and agricultural sectors. Key examples include admission to sporting events, cultural performances (e.g. theater tickets, museums) and amusement parks, domestic airline flights, certain hotel and accommodation services, and some agricultural goods (e.g. supplies of firewood, live animals and plants, winery services). As of recent guidance, hotel stays (short-term accommodation for travelers) also fall under the 13% rate. (This rate was temporarily lowered during 2020–2021 to support the tourism and cultural sectors during the COVID-19 pandemic, but is now back at 13% for these supplies.) [eurofiscalis.com], [vatcalc.com] [fiscal-req…ements.com]
• 10% VAT rate: The second reduced rate of 10% covers many everyday essential goods and services. Notable examples include most foodstuffs and non-alcoholic beverages (e.g. groceries), drinking water supplies, pharmaceuticals and medicines for human use, public transportation (domestic passenger transport by rail, bus, etc.), books, newspapers, and periodicals (including e-books and digital publications), hotel accommodation and lodging (many tourist accommodations have traditionally been taxed at 10%), restaurant and catering services (excluding alcoholic beverages), social services, and certain waste collection services. For instance, food and non-alcoholic drinks sold in restaurants benefit from the 10% rate, as do takeaway meals. Residential rents for long-term housing leases are also taxed at 10% (though many such rentals are exempt – see Section 3.3). [marosavat.com] [marosavat.com], [eurofiscalis.com]
• The reduced rates aim to lower the tax burden on items considered basic necessities or socially important (food, health, culture, etc.). Businesses must ensure they apply the correct rate to each sale; detailed lists of which items fall under 10% or 13% are provided by the tax authority. Any item not explicitly qualifying for 10% or 13% must be taxed at the standard 20% rate by default. [marosavat.com]

3.3 Zero-rated and exempt supplies

• Certain transactions in Austria are taxed at a 0% VAT rate (zero-rated), meaning no VAT is charged, but the supplier retains the right to claim input VAT credits on related costs. These include primarily cross-border goods transactions and a few special categories: [eurofiscalis.com]
• Exports of goods to non-EU countries are zero-rated (VAT is not charged to the foreign buyer, assuming proper customs export documentation is obtained). [eurofiscalis.com]
• Intra-Community supplies of goods – sales of goods dispatched from Austria to a business customer (with a valid VAT ID) in another EU Member State – are zero-rated in Austria, provided the conditions of intra-Community supply are met (e.g. proof of removal of goods, customer’s VAT number). [eurofiscalis.com]
• Certain international transport services are zero-rated. In particular, cross-border passenger transport that begins or ends outside Austria/EU (such as international flights) can be zero-rated. Note: Purely domestic passenger transport is taxed at 10%, and intra-EU road/rail transport of passengers is also taxed in the EU, but international air travel is zero-rated by convention. [amavat.eu] [eurofiscalis.com]
• Supplies of sea-going vessels and aircraft serving international routes (and related goods like fuel) can also qualify for 0% VAT. [vatcalc.com]
• Certain goods for solar energy: Following recent policy changes, Austria has added domestic supplies and installation of solar panels on private residences to the zero-rate category, as allowed by EU Directive changes (a measure to promote renewable energy). [vatcalc.com]
• Investment gold (gold that meets certain purity and form criteria) is effectively taxed at 0% in line with EU rules (treated as an exempt supply with credit; gold coins and bullion meeting specific criteria are not subject to VAT, but producers/dealers can opt to tax in some cases).
• Other specific transactions under customs or fiscal regimes can be zero-rated, such as goods placed in customs warehouses or VAT warehouses (see Section 15.7) – while stored under certain suspensive arrangements, the sale can be treated as outside the scope until removed.
• Exempt supplies (no VAT charged, but no input tax deduction on costs) – Austrian law designates various activities as VAT-exempt (steuerfrei) in line with the EU VAT Directive. In these cases, the seller does not charge VAT, but also cannot generally recover input VAT related to that exempt activity (they are “VAT exempt without credit,” except in special cases). Major VAT exemptions in Austria include: [eurofiscalis.com]
• Financial and insurance services (e.g. granting of loans, credit, insurance premiums). [eurofiscalis.com]
• Health and medical services, such as those provided by doctors, dentists, hospitals and certain medical care institutions. [eurofiscalis.com]
• Education and training services (schools, universities, vocational training), when provided by recognized institutions or educators. [eurofiscalis.com]
• Social, welfare, and charitable services provided by approved non-profit organizations or public bodies (e.g. certain childcare, eldercare, cultural services by non-profits). [eurofiscalis.com]
• Insurance and reinsurance services (per EU rules).
• Real estate: the sale of undeveloped land and the long-term leasing or letting of immovable property for residential use are generally exempt from VAT. (Commercial property rentals and new buildings can be taxable with options to tax in some cases.) [eurofiscalis.com]
• Postal services and public transportation provided by regulated bodies may be exempt (certain public postal services are exempt, while private courier services are taxable).
• Small business exemption (Kleinunternehmerregelung): Small enterprises with low annual turnover can opt to be VAT-exempt (see Section 5.1 below). This allows very small businesses (below the turnover threshold) to avoid charging VAT, though it also means they cannot reclaim input VAT on purchases. [eurofiscalis.com]
• The distinction between 0% rated and exempt is critical: Zero-rated businesses (like exporters) retain the right to deduct input VAT on their costs, whereas businesses making exempt supplies (e.g. a clinic providing exempt medical services or a small business under the threshold that hasn’t opted into VAT) cannot recover input VAT related to those exempt activities. Many businesses engaged in both taxable and exempt activities must apportion their input VAT accordingly. [eurofiscalis.com], [eurofiscalis.com]

3.4 Recent or upcoming rate changes

• Austria has enacted (or plans) several VAT rate adjustments in response to social policy and economic conditions, some of which leverage new flexibilities under EU rules:
• “Tampon tax” elimination: From 1 January 2026, Austria will apply a 0% VAT rate to feminine hygiene products and contraceptives, eliminating the VAT on these items (previously taxed at 10%). This change, part of the 2025 Budget Accompanying Act, was enabled by a 2022 EU VAT Directive amendment allowing member states to zero-rate certain essential items for health and hygiene. The policy aims to improve affordability of these essential products and promote gender equity in taxation. [vatcalc.com]
• Reduced VAT on essential food: The government has announced that from 1 July 2026, the VAT rate on a selection of basic food staples will be cut from 10% to 5%. This temporary halving of VAT on food basics is intended to alleviate cost-of-living pressures from high inflation. The measure was confirmed in January 2026 and will be funded in part by new environmental levies (e.g. a plastics tax) implemented later in 2026. As of early 2026 the exact list of food items to receive the 5% rate is still to be finalized. [vatcalc.com] [vatcalc.com], [vatcalc.com]

• 1 Jan 2022: New EU Reduced Rates Rules
• The EU expanded the list of goods and services eligible for reduced or zero VAT. Austria can now apply 0% to certain essentials (e.g. menstrual products).
• 1 Jan 2023–2024: Reversion of COVID-19 Cuts
• Temporary pandemic-era VAT cuts (5% on hospitality/cultural sectors) ended by 2022. Austria’s standard and reduced rates returned to 20%, 13%, 10%.
• 1 Jan 2025: Small Business Threshold Increase
• The annual turnover threshold for VAT exemption (Kleinunternehmer) was raised from €35,000 to €55,000 in 2025.
• 1 Jan 2026: 0% VAT on Women’s Health Products
• Austria introduces a 0% VAT rate for menstrual products and contraceptives, eliminating the “tampon tax” (previously 10%).
• 1 Jul 2026: 5% VAT on Essential Food Items
• A planned VAT cut will reduce the rate on key staple foods from 10% to 5% to combat high inflation and ease consumers’ expenses.
• These changes demonstrate Austria’s use of VAT policy to achieve social and economic objectives (e.g. reducing the cost of living and promoting health). It’s important for businesses to stay updated on such changes, as they will need to adjust their pricing, point-of-sale systems, and tax reporting when new rates take effect.

4. VAT Number Format

• Every VAT-registered business in Austria is issued a unique VAT identification number (VAT ID), known in German as Umsatzsteuer-Identifikationsnummer or UID-Nummer. The Austrian VAT number has the format ATU12345678 – the country code “AT” followed by the letter “U” and an 8-digit sequence of numbers. The first character after “AT” is always “U,” so in practice Austrian VAT numbers are often written as “AT U + 8 digits” (for example, AT U12345678). [avalara.com], [avalara.com]
• Some key points regarding the VAT number:
• Format: 11 characters in total (including the “AT” prefix). The “U” indicates the number is an Austrian VAT ID. The remaining eight digits are unique to the business.
• Usage: Austrian VAT numbers are required to be shown on invoices for cross-border EU transactions and domestic B2B invoices over €400 (see Section 14.2). Austrian companies must quote their VAT ID on their letterhead and official documents when dealing with EU partners. [vatcalc.com]
• Validation: Like all EU VAT numbers, Austrian VAT IDs can be validated through the EU’s VIES system to confirm that a trading partner is registered for VAT in Austria. This is often done by businesses before processing zero-rated intra-Community supplies. [avalara.com]
• Tax identification: The VAT ID (UID) is distinct from the general tax identification number (Steuernummer) used for other tax matters; only the UID is used for EU VAT purposes.

5. Registration Requirements

• Businesses must register for Austrian VAT if they carry out taxable activities in Austria above certain thresholds or under certain conditions. Registration rules differ for domestic vs. foreign businesses, and special schemes like OSS/IOSS can impact whether a foreign company needs a local registration.

5.1 Registration thresholds for residents and non-residents

• For Austrian-established businesses, a VAT registration becomes mandatory once annual turnover exceeds €55,000 (this threshold was increased from the previous €35,000 as of 2025). The threshold is calculated on worldwide turnover of the business’s activities subject to Austrian VAT, excluding certain exempt activities. Small businesses below €55,000 can choose not to register and take advantage of the small enterprise exemption (Kleinunternehmerregelung) (essentially making their local supplies exempt from VAT), but if they do not register, they cannot charge VAT or reclaim input VAT on expenses. Despite being below the threshold, some domestic businesses voluntarily register for VAT in order to reclaim input tax or appear as VAT-registered suppliers to clients (see Section 5.2). [fiscal-req…ements.com] [eurofiscalis.com]
• For foreign or non-resident businesses, there is no threshold – a VAT registration is generally required as soon as the business makes any taxable supplies in Austria (i.e. there is a **“zero threshold” for foreigners). For example, if a German company without an Austrian establishment begins making taxable sales to Austrian customers (and those sales are not covered by any reverse-charge or special scheme), it must register for VAT immediately, since it does not benefit from the €55,000 small business threshold. This rule ensures that foreign suppliers do not have an advantage over local businesses. [fiscal-req…ements.com]
• Some additional threshold-related rules:
• Distance sales into Austria (by EU businesses) no longer have a separate national threshold (formerly €35,000) as of 1 July 2021. Instead, a low unified EU-wide threshold of €10,000 applies to cross-border B2C distance sales of goods across the EU (see Section 18). [taxually.com]
• Intra-Community acquisition threshold: If an Austrian business or organization that is not VAT-registered (e.g. a small exempt business or a nonprofit) receives goods from other EU countries, a threshold of €11,000 per year applies. Above that, the entity must register for VAT to account for tax on those acquisitions. [fiscal-req…ements.com]
• EU digital services (OSS threshold): Similarly, for cross-border digital services supplied to consumers, a €10,000 EU-wide threshold applies, after which the business must account for VAT in the customer’s country (via OSS or local registration). For practical purposes, most such businesses opt into the OSS single return (see Section 5.3 and Section 17). [vatcalc.com]

5.2 Voluntary registration

• Austria permits voluntary VAT registration for businesses that are below the mandatory threshold or engaged only in exempt activities. A small business under €55,000 turnover, for example, may choose to register for VAT even though not required. By registering, the business commits to charging Austrian VAT on its sales and filing regular VAT returns, but gains the ability to deduct input VAT on its costs and purchases (which it otherwise could not as an unregistered small business). Voluntary registration can be beneficial for businesses that have significant input VAT (e.g. investing in equipment or stock) or that sell mainly to VAT-registered customers who can recover VAT – in such cases, being able to issue VAT invoices is advantageous. [eurofiscalis.com]
• To register voluntarily, a small business must follow the standard registration process (see below). Once registered, it must typically remain VAT-registered for a minimum period (usually five years for the small business scheme) before it can opt out of VAT again.

5.3 EU OSS/IOSS schemes and foreign seller simplifications

• Since July 2021, the EU’s “One-Stop Shop” (OSS) system allows businesses selling to consumers in multiple EU countries to avoid multiple local registrations. Austria participates fully in the OSS schemes: [vatcalc.com], [vatcalc.com]
• Union OSS (One-Stop Shop) for goods and B2C services within the EU: If an Austrian business makes distance sales of goods to consumers in other EU countries, or provides cross-border B2C services, it can opt to use the Union OSS. This allows the business to register in one EU country (e.g. Austria) and report all its EU-wide B2C sales in a single quarterly OSS return, rather than having to register for VAT in each consumer’s country. Conversely, a business from another EU country (or a non-EU business with an EU establishment) can use their home country’s OSS to report sales to Austrian consumers. The EU-wide threshold of €10,000 applies to cross-border B2C goods and electronic services; below that, a business can choose to treat foreign EU sales as domestic, but beyond it must charge destination VAT. [taxually.com]
• Non-Union OSS (for services): Non-EU companies providing digital services to EU consumers (like streaming, downloads, etc.) can register under the Non-Union OSS in any single EU country. This covers all B2C supplies of telecom, broadcasting, and electronic services (TBES) to the EU, including Austria, allowing a single return and payment. (The Non-Union OSS replaced the earlier “MOSS” scheme for digital services as of 2021.)
• IOSS (Import One-Stop Shop): For distance sales of low-value goods imported into the EU (consignments up to €150), foreign sellers can use the IOSS scheme. IOSS lets the seller collect Austrian VAT on the online sale to a consumer and remit it in a unified return, so that the goods can clear customs in Austria without the buyer paying import VAT. Participation in IOSS is optional but provides a smoother customer experience. Non-EU businesses need to appoint an intermediary in the EU (similar to a fiscal rep) to use IOSS. [vatcalc.com]
• To summarize, foreign businesses may not need an Austrian VAT registration if they can use one of the above special schemes. For example, a French company selling and delivering goods from France to Austrian private consumers can either (a) track if sales to all EU countries exceed €10,000 and then use its local OSS registration to report Austrian VAT, or (b) if it doesn’t use OSS, it would be required to register in Austria once the €10,000 threshold is crossed. Businesses shipping goods from outside the EU to Austrian customers can opt for IOSS or else use the standard import rules (with VAT collected from the consumer on import).

6. VAT Grouping Rules

• Austria allows VAT grouping (in German Organismus or Organschaft) for related companies. Under the VAT grouping provisions, two or more legally independent businesses that are financially, economically, and organizationally linked (generally, one company controls the others by >75% ownership, along with close integration in operations) may apply to be treated as a single VAT unit. The tax authority can also require a group if the conditions are met, to prevent abuse. [vatcalc.com]
• Key features of the Austrian VAT group (Mehrwertsteuergruppe) regime:
• The group as a whole is assigned one single VAT identification number, and files a consolidated VAT return covering all group members. [vatcalc.com]
• Intra-group supplies of goods or services between members of the VAT group are generally not subject to VAT (they are ignored for VAT purposes, as the group is treated as one taxable person).
• One entity is usually designated as the group representative (Organträger), responsible for filing the VAT returns and paying the tax on behalf of the whole group. This entity often handles all the input VAT credits and liabilities for the group. [vatcalc.com]
• All members are jointly and severally liable for the group’s VAT debts. This means the tax office can pursue any group member for the VAT owed by the entire group.
• Limitations: Only businesses established in Austria can join a VAT group; non-resident companies are excluded from Austrian VAT groups. Pure holding companies that are not themselves carrying on an economic activity may also be excluded if they lack taxable outputs. [vatcalc.com]
• VAT grouping can provide cash flow benefits and simplify intra-group invoicing, but groups must be structured carefully. Once formed, a group generally must remain in place for a minimum period (typically at least two calendar years). Groups must be approved by the tax authorities, who will evaluate the financial, economic, and organizational integration criteria.

7. VAT Recovery for Foreign Businesses

• Foreign businesses (i.e. businesses not established in Austria) that incur Austrian VAT have mechanisms to recover VAT on Austrian costs, either through VAT registration or through refund claims:
• If the foreign company is VAT-registered in Austria (e.g. because it makes taxable supplies in Austria or opts to register), it can typically deduct input VAT on Austrian expenses through its periodic Austrian VAT returns, just like a local business would.
• If the foreign company is not required to register in Austria – for example, it only incurs VAT on business travel, local supply purchases, or other activities without making taxable supplies – it may claim a VAT refund under the EU 8th or 13th Directive refund schemes (depending on whether it is an EU or non-EU business). These refund procedures allow foreign companies to recover VAT on Austrian purchases such as hotel accommodation, conferences, etc., provided certain conditions are met (see Section 16 for details).
• In practice, EU-established companies can use an electronic VAT refund (EVR) application via their home tax authority (under the 8th Directive), while non-EU companies must generally apply to the Austrian tax authority directly (13th Directive process). Austria does not require reciprocity – it will refund VAT to non-EU companies even if the applicant’s home country doesn’t have a VAT refund treaty, and it does not mandate a fiscal representative for refund claims. We cover refund procedures and requirements in detail in Section 16. [vatcalc.com]

8. Fiscal Representative Requirements

• A fiscal representative is a local tax representative appointed to act on behalf of a foreign business for VAT matters. In Austria, appointing a fiscal representative is mandatory for non-EU companies that register for Austrian VAT, unless the company is based in a country with a mutual assistance agreement with Austria for VAT (which historically included certain countries like Norway or the UK). In other words, most businesses established outside the EU must have a registered Austrian fiscal representative to obtain a VAT number and comply with VAT obligations in Austria. [vatcalc.com], [vatcalc.com]
• The fiscal representative must be a person or firm established in Austria (often a tax advisor, accountant, lawyer, or specialized firm) and is jointly liable with the non-EU business for the VAT debts and filings of that business in Austria. The representative’s details must be provided to the tax authorities and are typically noted on VAT registration documents and may need to be indicated on invoices. [vatcalc.com]
• EU-established businesses (and those from certain exempted countries with cooperation agreements) do not need a fiscal rep in Austria – they can register and deal with the tax authorities directly. They may, however, optionally appoint a service provider or mailing agent for convenience, but legally the responsibility remains with the taxable person. Importantly, OSS/IOSS registrations do not require a fiscal rep for non-EU companies; instead, a special OSS intermediary (usually an EU-based provider) plays a similar role for those schemes, but that is different from an Austrian fiscal rep tied to a local VAT registration.

9. Currency and FX Rules

• Austria’s VAT returns and records are in Euro (€), and VAT amounts on invoices must be expressed in euros even if the transaction is priced in a foreign currency. If an invoice is issued in a currency other than EUR, the taxable amount and VAT must be converted to euros using an official exchange rate. Acceptable conversion rates include: [vatcalc.com]
• The monthly average exchange rate published by the Austrian Ministry of Finance (Finanzministerium) for the period of the transaction. [vatcalc.com]
• The European Central Bank’s official daily rate (for the date of the supply or invoice). [vatcalc.com]
• Another bank exchange rate at the time of supply, if documentation is available to support it. [vatcalc.com]
• These options give businesses some flexibility, but consistency is required – a business should apply the chosen conversion method consistently over a financial year. The Austrian tax authorities may specify acceptable sources of exchange rates (commonly the ECB or the national bank rates). All VAT filings must ultimately be in euros, and any foreign currency amounts in accounting records should be converted to euros for reporting purposes.

10. VAT Law and Legal Framework

• The Austrian VAT system is governed by the Austria Value Added Tax Act 1994 (Umsatzsteuergesetz 1994), which came into effect on 1 January 1995 coinciding with Austria’s EU accession. This Act (along with subsequent amendments and associated regulations) lays out the rules on what transactions are taxable, how VAT is charged and calculated, registration requirements, compliance obligations, penalties, etc. The VAT Act closely follows the EU VAT Directive 2006/112/EC, as EU Member States are required to harmonize their VAT laws with this directive. In case of conflicts, EU VAT law prevails over national law.
• Key elements of the legal framework:
• Primary Legislation: The UStG 1994 (VAT Act of 1994) is the core law. It has been amended multiple times to incorporate new EU directives and policy changes (e.g. the 2020 “Quick Fixes”, the 2022 EU reduced-rate reform).
• Secondary Legislation: The Austrian Ministry of Finance (BMF) issues regulations and guidance (Verordnungen, Richtlinien) to interpret and implement the VAT Act’s provisions. These can include details on invoicing rules, compliance processes, etc. [vatcalc.com]
• EU Law Integration: As part of the EU, Austria’s VAT rules on cross-border trade, place-of-supply, exemptions, and special schemes (like OSS/IOSS, call-off stock, etc.) are all derived from EU-wide legislation. Austria participates in EU-level initiatives such as the “VAT in the Digital Age” (ViDA) reforms (see Section 25 and Section 14.3 for anticipated changes in digital reporting and e-invoicing).
• Other Relevant Laws: Related laws include Austria’s Fiscal Code (Bundesabgabenordnung) which covers procedural aspects like audits and appeals, and various EU Implementing Regulations that have direct effect (e.g. detailed rules on invoicing, or the EU VAT regulation on administrative cooperation for VAT).
• Up-to-date information on the Austrian VAT law (including the latest consolidated text of the UStG) is available on the government’s legal information system (RIS) and the Ministry of Finance’s website.

11. Tax Authorities

• The administration of VAT in Austria is overseen by the Federal Ministry of Finance (Bundesministerium für Finanzen – BMF), which is the central tax authority, and its network of regional tax offices (Finanzämter). Key points about the tax authority structure and responsibilities:
• The Federal Ministry of Finance (BMF) is responsible for national tax policy, issuing regulations and guidelines, and the overall administration of the tax system (including VAT). The BMF’s official website (bmf.gv.at) provides information, forms, and the “FinanzOnline” portal for electronic filing. [vatcalc.com]
• Tax offices (Finanzämter): Local tax offices handle the day-to-day processing of VAT registrations, returns, audits, and enforcement within their jurisdictions. Businesses are generally assigned to a tax office based on their registered address in Austria.
• Non-resident taxpayers: Austria has a central tax office for non-resident VAT registrations and matters, which is the Graz-Stadt Tax Office (in the city of Graz). Foreign businesses registering for Austrian VAT without a local establishment typically fall under the jurisdiction of the Graz tax office (Finanzamt Graz-Stadt), which specializes in international taxpayers. [vatcalc.com]
• Customs Authority: Import VAT (EU customs duty and import VAT collection) is administered by Austrian customs (part of the Ministry of Finance). They work closely with tax offices when import VAT is deferred or when post-import adjustments are needed.
• All VAT filings in Austria are done electronically via the FinanzOnline system, which is an online government portal. Communications from the tax authorities (such as notices, assessments, and reminders) are also generally sent through this electronic system or via postal mail. The tax authorities provide extensive guidance and support on VAT matters, including telephone hotlines and published guidelines (e.g., Umsatzsteuer guidelines).
• Tax audits for VAT are conducted periodically, especially for larger companies or those regularly claiming refunds. The Ministry of Finance often updates and publishes guidelines on specific VAT topics (like VAT grouping, reverse charges, etc.), which are important for ensuring compliance.

12. Scope of VAT

• Austrian VAT applies to a broad range of economic activities. The scope of VAT in Austria encompasses the following main categories of transactions: [vatcalc.com]
• Supplies of goods or services within Austria: All supplies of goods or services made in Austria by a taxable person for consideration (i.e. for payment) in the course of business are subject to VAT, unless a specific exemption applies. This includes sales, transfers, and the provision of services carried out on Austrian territory.
• Intra-Community acquisitions: Goods brought into Austria from other EU countries by businesses (or certain organizations) are subject to acquisition VAT in Austria, under the EU reverse-charge mechanism for intra-EU trade. Typically, if an Austrian business buys goods from a supplier in another EU Member State, it must account for Austrian VAT on that acquisition (often simultaneously claiming an input credit). [vatcalc.com]
• Importation of goods from outside the EU: When goods are imported into Austria from non-EU countries, import VAT is due at the border (at the same rate that would apply to a domestic sale of those goods). The import VAT is collected by customs; if the importer is a VAT-registered business, it can usually reclaim the import VAT on its next return, or use deferred accounting (see Section 15.6). [vatcalc.com]
• Self-supplies: When a business takes goods or services out of its taxable economic activity for private use (e.g. a company owner takes business inventory for personal use), it may constitute a taxable deemed supply. Austrian VAT can apply to these self-supplies to prevent untaxed consumption.
• Distance sales to consumers: Since mid-2021, if a foreign business sells and ships goods to Austrian consumers (B2C distance sales), those sales are subject to Austrian VAT from the first euro (with the EU-wide €10,000 threshold for all cross-border sales – see Section 18). [vatcalc.com]
• Domestic reverse-charge transactions: Certain transactions where the place of supply is Austria, but the supplier is not established in Austria or the supply is of a specific nature (like construction services or scrap materials), may shift tax liability to the customer (see Section 15.3). These supplies are still in the tax scope, but the obligation to pay the VAT is shifted to the recipient (purchaser) rather than the supplier.
• Out of scope: Activities that do not fall under the definition of economic activity or that involve no consideration (payment) are outside the scope of VAT. For example, non-business private transactions, purely statutory fees or fines, and some government non-commercial activities are not subject to VAT.
• Overall, if you are doing business in Austria, any time you sell goods or provide services and the place of supply is considered Austria, you need to consider Austrian VAT. The place-of-supply rules (which determine where a supply is taxable) follow the EU standard rules (with special cases for certain services, see Section 13). Generally, supplies of goods are taxed where the goods are located at the time of sale (or where transport begins), and supplies of services are taxed where the customer is located (for B2B) or where the supplier is located (for B2C), with various exceptions.

13. Time of Supply Rules

• The time of supply (tax point) rules in Austria determine when a transaction is regarded as taking place for VAT purposes – i.e. when VAT becomes chargeable. Austrian rules align with EU norms, with a few specific applications. In general, the tax point for a supply is either when the goods or services are provided or when payment is received, unless an invoice is issued promptly, in which case the invoice timing can determine the tax point. Below are the rules by category: [vatcalc.com]

13.1 Goods

• For one-time supplies of goods, the VAT becomes chargeable at the end of the calendar month in which the goods are delivered or made available to the customer, unless an invoice is issued earlier. If an invoice is issued in the same month as the delivery, the date of invoice (or payment, if earlier) sets the tax point. If the invoice is issued in the following month (by the 15th) after the month of delivery, the tax point can be shifted into that next month. In practice, this means that if you deliver goods on March 20 and invoice on April 5 (within 15 days of the next month), the tax point is April 5 (and the VAT is accounted for in April). However, if you waited until May to invoice, the tax point would revert to March 31 (end of the delivery month) because the invoicing wasn’t done within the allowed 15-day window. [vatcalc.com]
• Certain special cases for goods:
• Intra-Community supplies of goods (zero-rated exports to EU customers) must be invoiced by the 15th of the month following the supply at the latest, as per EU rules. [vatcalc.com]
• Supplies of goods on approval or a sale-or-return basis: If goods are sent to a customer for approval (where transfer of ownership is conditional), the time of supply is when the customer indicates acceptance of the goods. If the customer returns the goods, no supply has taken place. If they keep them (or a specified approval period expires without return), the tax point is when approval/acceptance occurs. [vatcalc.com]
• Continuous or staggered supply of goods: For goods supplied continuously over a period (e.g. via pipeline, or ongoing supply of electricity), if individual deliveries or periodic statements are not used, there may be rules deeming a tax point at least calendar quarterly.

13.2 Services

• For one-off services, the general rule is similar to goods: VAT is chargeable at the end of the calendar month when the service is performed or completed, unless an invoice is issued within the following month. If an invoice is issued by the 15th of the month after the service completion, the date of the invoice becomes the tax point. If payment is received in advance of completion, then the date of payment may also create a tax point (for that amount). [vatcalc.com]
• For example, if a service is fully performed on July 10, its tax point would normally be July 31 for VAT purposes. But if you issue the invoice on August 5, then the tax point shifts to August 5 (still within the allowed window). If the client paid you on July 1 (a prepayment), then VAT on that amount would be due in the July period.

13.3 Continuous services

• For continuous or ongoing services (services supplied over a period of time, e.g. a year-long contract for consulting or leasing), Austrian VAT law stipulates periodic tax points. Generally, an invoice or payment on a periodic basis will determine the tax point for that period. If services are provided continuously without interim invoices, at minimum an annual tax point is usually required (e.g. year-end). Many long-term service contracts will specify periodic billing (monthly or quarterly), and each invoice creates a tax point for the amount billed. If payment is received (or due) regularly (like subscription services paid monthly), each payment can create a tax point. [vatcalc.com]
• In essence, continuous services are taxed when billed or paid. If neither invoicing nor payment occurs by year-end, the tax authority may deem a supply to occur at least on December 31 each year for the portion delivered up to that date.

13.4 Imports

• For imports of goods (bringing goods into Austria from outside the EU), the time of supply is the moment of importation, i.e. when the goods clear customs into free circulation in Austria. At that point, import VAT is due (at the same rate as domestic supply of those goods). Normally, the import VAT must be paid to customs before the goods are released, unless the importer has arranged a deferred payment or postponed accounting (see Section 15.6 on import VAT deferment). The import VAT can subsequently be claimed as input VAT in the importer’s VAT return if it relates to taxable activities. [vatcalc.com]

13.5 Goods on approval/return

• As mentioned above, when goods are supplied on a sale or return basis (approval basis), the VAT becomes due when the goods are accepted by the customer (i.e. when it becomes certain that a sale has occurred). If the customer has the right to return goods after receiving them, the supplier’s VAT liability is in limbo until the approval or return happens. Only once the customer signifies acceptance (or the return period lapses without a return) does a taxable supply take place. At that point, an invoice must be issued and VAT accounted for. If the customer returns the goods, then the sale is not completed and no VAT is due. [vatcalc.com]
• These time-of-supply rules mean businesses must keep track of when an invoice was issued and when goods/services were delivered or paid for, to determine the correct VAT period. Missing the 15th of the following month invoicing deadline can accelerate the tax point into the earlier period. Good accounting systems are needed to ensure VAT is reported in the correct period, especially for continuous supplies or complex transactions.

14. VAT Invoicing Requirements

• Austria’s VAT invoicing rules follow the standards set by the EU VAT Directive with some national specifics. Invoices are crucial for VAT – they serve as evidence for charging VAT and for customers to deduct input VAT. Below are the key requirements regarding when and how to issue invoices, what information they must contain, special invoice types, record-keeping, and corrections.

14.1 Invoice issuance deadlines

• In Austria, VAT invoices must generally be issued promptly, with specific deadlines in certain cases:
• For a typical domestic supply of goods or services, an invoice must be issued no later than six months after the supply took place. This is a long-stop deadline – in practice, invoices are usually issued at the time of supply or shortly after. [vatcalc.com]
• For intra-Community supplies of goods (sales from Austria to VAT-registered customers in other EU countries, which are zero-rated), the invoice must be issued by the 15th day of the month following the month of delivery of the goods. Similar timing applies to certain other transactions where the customer is liable for VAT (e.g. some reverse-charge situations for services). [vatcalc.com]
• For continuous supplies (ongoing services, etc.), if periodic invoices are issued (say, monthly or quarterly), each invoice should be issued by the agreed schedule (and at least once a year if the service is continuous over more than a year with no interim invoices).
• It’s common business practice to issue invoices immediately or shortly after the delivery of goods or completion of a service, even if not strictly mandated by law, to ensure clarity and prompt payment.
• It’s worth noting that Austria, like all EU countries, distinguishes between B2B and B2C transactions for invoicing. **If a supply is made to a private consumer (B2C), there is generally no legal requirement to issue a VAT invoice (a receipt may be given, but a full tax invoice is only mandatory if the customer requests one). However, if the sale is through a retail cash register, a fiscal receipt is required (see Section 20 on cash tills). For all B2B transactions, a VAT invoice is required. [vatcalc.com]

14.2 Required contents of an invoice

• Austrian VAT law specifies certain information that must appear on a VAT invoice. These largely mirror the EU Directive requirements. For standard full invoices (for transactions over €400), the following details must be included: [vatcalc.com]
• Invoice date (date of issue).
• Unique sequential invoice number that uniquely identifies the invoice.
• Supplier’s information: full name and address, and supplier’s Austrian VAT identification number (UID).
• Customer’s information: full name and address. If the invoice total exceeds €10,000 (incl. VAT) or if it is a cross-border supply (intra-EU or export) or a domestic reverse-charge supply, the customer’s VAT identification number must also be included on the invoice. [vatcalc.com]
• Date of supply of the goods or services, if different from the invoice date (e.g. if the invoice is issued days or weeks after the actual delivery).
• Description of the goods or services supplied, in sufficient detail to identify what was supplied (quantity, nature of the goods; type and extent of services).
• Net amount charged for the goods/services (price excluding VAT).
• Applied VAT rate(s) (e.g. 20%, 13%, 10% as appropriate). If multiple VAT rates apply to different items on the same invoice, the amounts related to each rate should be separated.
• VAT amount payable (tax amount) on each rate, or at least the total VAT amount for the invoice.
• Gross amount (total including VAT).
• If a supply is zero-rated or exempt, a notation to that effect – e.g. “steuerfrei – Export” for an export, or a reference to the applicable article of the VAT law or EU Directive for the exemption.
• If the reverse charge applies (meaning the customer must self-account for VAT), the invoice should not charge VAT, and must include a reference such as “reverse charge – VAT payable by recipient” (in German, e.g., “Steuerschuldnerschaft des Leistungsempfängers”). [vatcalc.com]
• If a fiscal representative was appointed (applicable for non-EU businesses – see Section 8), the rep’s name and address should appear on invoices.
• For low-value sales under €400, Austria allows “simplified invoices” which do not need to contain all of the above details. A simplified invoice (often a cash register receipt or voucher) needs at least the issue date, identification of the supplier, description of goods/services, total price including VAT and the VAT rate applied. The buyer’s details and the sequential invoice number are not required on such low-value receipts. This greatly eases compliance for retailers making many small transactions. [vatcalc.com]
• All invoices, whether paper or electronic, must preserve the integrity of the content and authenticity of origin. Austrian law (again following EU rules) doesn’t mandate a particular way to ensure this – it can be achieved through business controls or technology (for instance, using a digital signature or EDI system for electronic invoices, or maintaining reliable internal controls for paper invoices). [vatcalc.com]

14.3 E-invoicing and digital signature rules

• Electronic invoicing (e-invoicing) is allowed and recognized in Austria, under the condition that authenticity and integrity of the invoices are guaranteed. Austrian regulations comply with the EU rules: buyers must accept to receive invoices electronically (though as of 2024 the EU has removed the buyer consent requirement for e-invoicing, to facilitate broader adoption). Businesses are free to use PDF invoices, EDI, or other structured formats; no specific format is mandated for B2B as long as the invoice contains the required information and the issuer ensures its validity. [artus.at]
• Digital signatures: While not mandatory, using an advanced electronic signature or an EDI with a detailed audit trail is one way to satisfy the requirement that an e-invoice’s origin and contents are unaltered. Austria has no unique national e-invoicing format for commercial transactions, but if businesses choose to use structured electronic formats (XML-based invoices, etc.), these are acceptable and often preferred for automated processing.
• B2G e-invoicing: Since 2014, Austria has mandatory e-invoicing for invoices to federal government bodies (B2G transactions). Suppliers to the government must submit invoices via an electronic system (in a structured format, typically XML, via the Austrian government’s e-Invoice portal). This was one of the early steps in Austria’s digital invoicing initiatives. [artus.at]
• Upcoming changes (ViDA): Under the EU’s VAT in the Digital Age (ViDA) initiative, significant changes are expected. The EU has approved a move toward mandatory digital reporting and e-invoicing for cross-border B2B transactions in the coming years. Notably, from 2028 electronic invoicing will become the default for intra-EU B2B transactions (removing the current requirement for customer consent) and near-real-time digital reporting of these transactions to tax authorities will replace the existing ESL (see Section 25). Austria supports this move and is expected to adopt the required legislative changes. As of 2026, Austria is considering a broader adoption of e-invoicing for domestic B2B transactions as well, to further combat fraud and modernize VAT collection. Businesses should monitor developments in Austrian law: it’s likely that within a few years, electronic invoicing will become the norm for B2B sales, and the tax office may require SAF-T or other electronic reports (see Section 23.4). [artus.at], [artus.at] [artus.at]

14.4 Simplified invoices

• As noted, simplified VAT invoices (such as cash receipts) can be issued for transactions up to €400 (including VAT). A simplified invoice does not need to list the customer’s name or address, nor a sequential invoice number, making it easier for retail situations. However, if a customer is a business and requests a full invoice (to claim input VAT), the supplier should issue a full invoice even for small amounts. [vatcalc.com]
• Additionally, invoices for small amounts (up to €250) can omit certain details such as the tax point (if it coincides with invoice date) and the customer’s identification, as long as the essential data (supplier info, date, description, total price and VAT rate) are present. These thresholds align with EU rules that allow simplified invoicing for low values

14.5 Self-billing

• Self-billing (where the customer issues the invoice on behalf of the supplier) is permitted in Austria subject to mutual agreement. In a self-billing arrangement, the buyer prepares the invoice (for example, common in construction or farming sectors), but both parties must agree in writing, and the invoice must state that it is “Gutschrift” (credit note/self-billing invoice) according to §11 of the UStG. The self-billed invoice must contain the same information as a regular invoice and is treated as if issued by the supplier. The supplier must ensure the invoice’s accuracy and it counts for VAT reporting on both sides. [vatcalc.com]

14.6 Retention period

• In Austria, VAT invoices and accounting records must be kept for seven years from the end of the year in which they were issued. However, for certain capital goods (notably real estate), invoices must be kept for ten years because of the longer capital goods adjustment period (see Section 15.10). The records can be stored electronically and even kept outside Austria, provided they can be made available to the authorities in Austria on request and in a readable format without delay. Taxpayers must ensure secure storage to maintain legibility and integrity of the records for the full retention period. [vatcalc.com]

14.7 Invoice correction methods

• If an error is made on an invoice or a change occurs after issuing an invoice (e.g. price adjustment, returned goods, discounts not accounted for), the preferred method in Austria is to issue a credit note (Gutschrift) or a corrected invoice. The correction document should:
• Reference the original invoice (ideally by its number and date). [vatcalc.com]
• Clearly state the changes being made (e.g. “Invoice is corrected due to discount” or “storniert – cancelled”).
• Show the adjustment in value or VAT. If a full cancellation, the credit note will mirror the original invoice values in negative.
• The customer must acknowledge the credit note for it to be valid (especially if the customer already claimed input VAT; they would need to adjust their input VAT accordingly). Minor errors (like a typo in the address) can sometimes be corrected by a simple note on the invoice and initialed by both parties, but significant errors (wrong amount, wrong VAT rate, etc.) require formal adjustment through a credit note or replacement invoice. [vatcalc.com]

15. Compliance and Deductions

• This section covers the ongoing VAT compliance requirements in Austria and specific rules on VAT deductions and related mechanisms.

15.1 Right to deduct input VAT and key exceptions

• Like all EU VAT systems, Austria allows businesses to deduct input VAT (Vorsteuer) on purchases of goods and services used for their taxable business activities. This means a VAT-registered business can generally reclaim the VAT it pays on inputs, offsetting it against the VAT it charges on sales (output VAT). The ability to deduct ensures that VAT is ultimately paid only by the final consumer, not by intermediate businesses. [eurofiscalis.com]
• However, there are important exceptions where input VAT is not deductible in Austria:
• Non-business use: No input VAT deduction is allowed on purchases that are not used for the business or are used for private purposes. For example, if an asset is only 10% business-used, the VAT is not recoverable (the law requires more than 10% business use to deduct at all). [vatcalc.com]
• Exempt activities: When a business makes VAT-exempt supplies (see Section 3.3 for examples like financial services, healthcare, small business exempt turnover, etc.), the VAT on costs associated with those exempt supplies typically cannot be recovered. Businesses with mixed taxable and exempt activities must apportion input VAT – only the portion related to taxable (and zero-rated) activities is deductible. [eurofiscalis.com]
• Passenger vehicles: Input VAT on the purchase, lease, and operating expenses of passenger cars is generally not deductible in Austria (a common rule in many EU countries), except in special cases (e.g. certain commercial passenger transport vehicles, driving school cars, or zero-emission vehicles may have partial deduction). [vatcalc.com]
• Entertainment expenses: VAT on business entertainment and representation costs (taking clients to dinner, corporate hospitality events) is mostly non-deductible, except if the expenses are directly related to business promotion and not overly luxurious. [vatcalc.com]
• Luxury goods and personal expenses: VAT on goods or services not used for business (or on so-called “luxury” items not necessary for business) is not recoverable. For example, VAT on yachts or artwork purchased by a business (unless dealing in those goods) would not be reclaimable.
• The above are some key exceptions. Austrian VAT law contains a detailed list of blocked input VAT items (Nichtabzugsfähige Vorsteuer) similar to those in the EU directive. Businesses should be aware of these to avoid claiming ineligible input VAT, which could lead to penalties.
• Notably, input tax on purchases made prior to VAT registration is generally recoverable on the first VAT return after registration, for goods and services acquired up to five years before registering (provided they were used for the now-taxable business activity). This helps startups and new registrants recover VAT on their initial investments. [vatcalc.com]

15.2 Call-off stock arrangements

• Since 1 January 2020, Austria applies the EU “call-off stock” simplification introduced by the VAT “Quick Fixes.” Under this arrangement, when an EU business transfers its own goods from another Member State to a specific buyer’s stock in Austria, with the buyer taking title upon “calling off” the stock:
• The movement of goods into Austria is not treated as an immediate taxable transaction (no Austrian import or local supply at the time of transfer).
• Instead, when the Austrian customer withdraws the goods from the stock (and thus takes ownership), that moment is treated as an intra-Community supply by the supplier in the origin country and a corresponding intra-Community acquisition by the customer in Austria. [vatcalc.com]
• The foreign supplier does not have to register for VAT in Austria, as long as all conditions of the call-off stock regime are met (e.g. the customer is known and VAT-registered in Austria, the goods are removed within 12 months of arrival, and the transaction is properly recorded in an EU stock register). [vatcalc.com]
• This simplification is designed to remove the burden on businesses that regularly store goods at a customer’s premises in another EU country. Without the call-off stock rules, the foreign company would have to register in Austria, report a deemed intra-EU transfer and subsequent local supply. With the simplification, the entire transaction is treated as a direct cross-border supply to the customer when the stock is used. Businesses using this scheme must comply with record-keeping and reporting requirements (e.g., include the movements in the EU Sales List and maintain a special inventory record).

15.3 Domestic and cross-border reverse charge mechanisms

• Austria makes extensive use of the reverse charge mechanism to shift VAT liability from the supplier to the customer in various scenarios:
• General B2B cross-border services: If a foreign business (not established in Austria) provides services that are taxable in Austria to an Austrian VAT-registered business, the general EU reverse charge applies. The Austrian customer must self-account for the VAT (both output and input) on its VAT return, while the foreign supplier does not charge Austrian VAT. This applies to most B2B services under the main “place of supply” rule (where the service is taxed where the business customer is established). It allows foreign service providers (e.g. consultants, advertisers, digital service providers) to serve Austrian clients without needing a local VAT registration, since the Austrian buyer handles the VAT. [vatcalc.com]
• Import of services by Austrian businesses: Similarly, if an Austrian business purchases services from a supplier outside Austria (whether EU or non-EU), it must apply a reverse charge and account for Austrian VAT on those services (typically with simultaneous input VAT deduction, if the service is used for taxable activities). This includes things like software and digital services from non-EU providers (the “Netflix tax” concept for B2C also exists – see Section 17).
• Domestic reverse charge for non-established suppliers: Austria has an optional domestic reverse charge (under Article 194 of the EU VAT Directive) for certain cases where a supplier from abroad makes a supply within Austria to a VAT-registered customer. In such cases, even though the sale is domestic, the foreign supplier can omit Austrian VAT and the local business customer must account for it instead. Notable exceptions: this does not apply to supplies of goods or certain admissions – e.g. if a non-resident charges admission to an event in Austria, the reverse charge is not allowed, and that non-resident must register and charge VAT on the ticket sales. [marosavat.com], [marosavat.com] [marosavat.com], [vatcalc.com]
• Specific domestic reverse-charge sectors: To combat VAT fraud, Austria applies domestic reverse charge to specific high-risk goods and services even when supplied by local firms. These include e.g. construction and repair services (where a subcontractor bills a main contractor), supply of staff (labour leasing), transactions of scrap metal and waste, supplies of certain electronic devices (like mobile phones, integrated circuit devices in bulk, video game consoles under certain conditions), gas and electricity trading with resellers, transfer of emission certificates, and investment gold. In these cases, the supplier does not charge VAT; instead the customer (if VAT-registered in Austria) must account for VAT under reverse charge. The Austrian VAT Act and regulations detail all cases where reverse charge applies, aligning with allowances under EU law. [marosavat.com] [vatcalc.com]
• Businesses must ensure they correctly apply the reverse charge where required – incorrectly charging VAT when a reverse charge should apply (or vice versa) can lead to issues. Where reverse charge is used, the invoice should clearly state that VAT is not charged and that the buyer must self-account (see Section 14.2).

15.4 Treatment of cash discounts

• In Austria, cash discounts (Skonti) given to customers for prompt payment can adjust the VAT base. The VAT can be adjusted without needing to issue a credit note, as long as the discount was clearly provided for in the invoice terms. Typically, an invoice might state terms like “2% discount for payment within 10 days,” and if the customer takes the discount, the supplier can reduce their output VAT accordingly in their VAT return for that period. The customer must likewise reduce their input VAT claim to the amount actually paid. Austrian guidance allows this adjustment through the VAT return (the company’s VAT accounting) rather than mandating a revised invoice, provided the discount was agreed upon in the original invoice. If a discount is granted after the fact (not pre-defined on the invoice), a credit note may be required to adjust the VAT. [vatcalc.com]

15.5 Bad debt relief conditions

• If a customer fails to pay an invoice and the debt is written off as uncollectible, bad debt relief is available in Austria to reclaim the output VAT that was previously declared. A business can adjust its VAT return to deduct the VAT on a supply that turned into a bad debt. However, certain conditions apply: [vatcalc.com]
• Sufficient time must have passed and proof of the debt’s uncollectibility is required. Typically, this might be evidenced by insolvency/bankruptcy of the customer, unreturned executions by a court officer, or other documentation that the debt cannot be recovered.
• If the customer later pays (even partially), the VAT related to the amount paid becomes due again.
• The adjustment is usually made in the VAT return for the period in which it became clear the debt will not be paid. Austrian tax guidelines provide details on acceptable proof and timing.
• Businesses should maintain documentation of collection efforts, legal actions, and any official declarations of bankruptcy to support the claim of bad debt in case of a tax office query.

15.6 Import VAT deferment schemes

• Under standard rules, importers must pay import VAT at the time of importation to customs. However, Austria offers a postponed accounting mechanism for import VAT (similar to many EU countries). With authorization, an importer can defer the payment of import VAT by accounting for it in their next periodic VAT return instead of paying at the border. This is sometimes called the “import VAT deferment” or postponed VAT scheme. Essentially, the importer does a reverse charge: declare output tax on the import and simultaneously claim it as input tax (if entitled), resulting in a cashflow-neutral outcome. [vatcalc.com]
• To use postponed import VAT accounting, businesses usually need to apply to the tax office or meet certain criteria (such as being a regularly VAT-compliant business). If approved, when goods are imported, the customs will not require immediate VAT payment; instead, the importer will report the import value and VAT on the next VAT return.
• Additionally, there is an import VAT exemption for goods that are immediately re-exported or removed to another EU country. If goods enter Austria from a non-EU country but are directly transported or sold onward to another Member State (i.e., an import followed by an intra-Community supply), the import can be free of VAT (the transaction is treated as an exempt import followed by a zero-rated intra-EU supply). This relief is subject to strict conditions (the goods must move to another EU country and the buyer’s VAT number must be reported). It’s often used in supply chain arrangements where Austria is a transit point. [vatcalc.com]

15.7 VAT warehousing

• Austria does not have a distinct domestic “VAT warehousing” regime for deferring VAT on certain goods, beyond what EU customs legislation provides. In some countries, VAT warehouses allow suspension of VAT on goods traded domestically under certain conditions. In Austria, the concept is mostly covered by customs warehouses and bonded warehouses: goods placed in a customs warehouse are not subject to import VAT or duties until they are removed into free circulation. Austria does allow VAT suspension in specific cases such as goods under customs control or in transit (e.g., under a customs/excise warehouse arrangement, or under the “temporary admission” or similar regimes). Once goods leave the warehouse for use or consumption in Austria, VAT becomes due. [vatcalc.com]
• In summary, while no special VAT warehouse license is available domestically, businesses can use EU customs regimes to postpone VAT. Austria also permits certain exceptions like no VAT on imports of goods that will be immediately transported to another EU country (as noted above in 15.6, effectively a form of warehousing relief for transit goods).

15.8 Supply-and-install rules

• When a foreign business supplies goods to Austria along with installation or assembly services, this can create a taxable presence. Generally, non-established suppliers performing installation projects in Austria (for example, installing machinery at a customer site) can avoid having to register and charge Austrian VAT if the Austrian customer is VAT-registered and agrees to apply reverse charge. In such a case, the supply and installation is treated as a single service where the place of supply is Austria, but the Austrian customer self-accounts for the VAT under reverse charge. [vatcalc.com]
• However, if the customer is a private individual or a non-VAT-registered entity, reverse charge cannot apply – the foreign supplier would then likely need to register for Austrian VAT to charge VAT on the supply and installation. Suppliers of goods with installation should always verify whether their transaction falls under the domestic reverse charge (which in Austria covers services by a foreign supplier to a business, but not typically goods with installation to a private person). If in doubt, seeking a ruling or professional advice is recommended, since incorrect treatment (failing to charge VAT when required) could lead to liabilities. [marosavat.com], [marosavat.com]

15.9 Use-and-enjoyment provisions

• Under EU rules, countries can apply use-and-enjoyment provisions to tax certain services in the place they are actually used. Austria has exercised this option for some services, to prevent non-taxation of cross-border services. In practice:
• For **services supplied by a non-EU provider to an Austrian non-business customer (B2C), which under normal rules might be deemed outside the EU, Austria asserts taxing rights if the services are effectively used or enjoyed in Austria. [vatcalc.com]
• Examples of services where Austria applies use-and-enjoyment rules include: the short-term hiring of means of transport to Austrian privates, the long-term hiring or leasing of goods used in Austria, the provision of telecommunication, broadcasting, and electronic services by non-EU suppliers to Austrian consumers, and certain electronically supplied betting or gambling services. In these cases, even if general rules might place the service outside the EU, Austria will treat the service as supplied in Austria to ensure VAT is charged (usually requiring the foreign supplier to register or use a special scheme). [vatcalc.com]
• For B2B services, the use-and-enjoyment rules can also apply in reverse (to prevent undue taxation in Austria). For instance, if an Austrian business provides certain services that would normally be taxed in Austria (per general rule) but the service is entirely used outside the EU, Austria may consider it as performed outside the EU (and thus not subject to Austrian VAT). This is less common but highlights the principle. Businesses involved in telecommunications, broadcasting, or transport services should review these rules to determine the correct tax treatment.

15.10 Capital goods adjustment period

• If a business acquires capital assets and deducts input VAT, but later changes the use of those assets (e.g. from taxable to exempt use), Austrian VAT law requires an adjustment of the input VAT originally claimed. The period over which changes in use must be monitored (and adjustments made) is called the capital goods adjustment period:
• For movable tangible property (equipment, machinery, vehicles etc.) and intangible assets, Austria’s adjustment period is 5 years (the year of first use plus four subsequent years). For example, if you buy a machine in year 1 and initially use it 100% for taxable operations (deducting full VAT), but in years 2–5 you partially use it for exempt operations, you must adjust (pay back) some VAT via your returns. [vatcalc.com]
• For immovable property (real estate), the adjustment period is 20 years. Buildings and land-related capital expenditures are adjusted over a longer period due to their long use life. A change in the use of a property (e.g., from taxable rental to exempt rental) during the 20-year window triggers a proportional adjustment of the initially deducted VAT. [vatcalc.com]
• The adjustments are made each year to account for the change in use during that year, in one twentieth (for immovables) or one fifth (for movables) of the total input tax. After the adjustment period ends, no further corrections are needed. Businesses must keep the invoices for capital goods throughout the adjustment period (hence the 10-year record retention for real estate invoices – see Section 14.6).

16. VAT Recovery for Non-Residents

• Foreign businesses that incur VAT in Austria but are not VAT-registered in Austria can often recover some or all of that VAT through special refund procedures, provided they meet the requirements. The mechanism differs depending on whether the business is established in an EU member state or outside the EU:

16.1 EU 8th Directive refunds (EU businesses)

• If a business is established in another EU country and incurs Austrian VAT (for example, on travel expenses, trade fair costs, local purchases of goods/services without becoming the supplier), it can seek a refund under EU Directive 2008/9/EC (known as the 8th Directive on VAT refunds). Key points for EU refunds:
• The EU business must not have a residence, seat, or fixed establishment in Austria, and must not have carried out any taxable supplies there (other than certain zero-rated transport/services) during the period of the claim.
• Refund applications are submitted electronically through the tax portal of the business’s own EU country (in its own language). The home tax authority then forwards the claim to Austria via a European network.
• The refund period can be a calendar quarter or a full calendar year. Claims can also cover shorter periods of a year, but no more than five claims per year.
• Minimum amounts: For quarterly claims, the minimum VAT amount is EUR 400; for an annual claim (or final part of year) the minimum is EUR 50. [amavat.eu]
• Deadline: The claim for a given year must be submitted by 30 September of the following year (e.g., VAT incurred in 2025 must be claimed by 30 Sept 2026). [amavat.eu]
• Supporting documents: Generally, invoices over a certain amount (EUR 1,000, or EUR 250 for fuel) need to be scanned and attached to the electronic application. Austrian authorities may request additional info via the portal.
• Processing time: The Austrian tax authority is supposed to issue a decision within 4 months of receiving the application (which can be extended to 6-8 months if they request additional information). Approved refunds are paid out to the applicant’s bank account (which can be in any EU country).
• Note: During the refund period, if the claimant actually had to register and file Austrian VAT (because of making supplies), then the 8th Directive route is not available for that period – instead, the business would recover input VAT via its Austrian VAT returns.

16.2 Non-EU 13th Directive refunds (non-EU businesses)

• For businesses established outside the EU that incur Austrian VAT, Directive 86/560/EEC (the 13th Directive) provides a path to reclaim VAT, broadly similar to the EU process but with some important differences:
• Application to Austrian authorities: Non-EU businesses must send their refund application directly to the Austrian tax authorities (Federal Tax Office), specifically to the office in Graz that handles non-resident VAT matters.
• Deadline: The application must typically be submitted by 30 June of the year following the year of the expenses (i.e., within six months after year-end). [amavat.eu]
• Form and documents: The application can be made electronically via the Austrian FinanzOnline portal if the claimant is registered for access, or otherwise in paper form using the official U5 form. Applicants must attach original invoices and receipts (or digital copies thereof) as proof of the VAT paid, as well as a certificate of taxable status from their home tax authority (this certifies that the business is registered for business purposes abroad).
• Minimum amounts: The same minimum values typically apply (EUR 400 for sub-annual claims, or EUR 50 for annual). [amavat.eu]
• No reciprocity required: Unlike some EU countries, Austria does not require that the non-EU country offer reciprocal VAT refunds to Austrian businesses. This means even companies from countries that don’t normally refund VAT to Austrians (with the exception of a few banned jurisdictions) can still apply for Austrian refunds. [vatcalc.com]
• Fiscal representative: Austria also does not require non-EU refund claimants to appoint a fiscal representative for the refund process (this is distinct from needing a fiscal rep to register for VAT, which is a different situation – see Section 8). [vatcalc.com]
• The Austrian authorities generally process 13th Directive refund claims within six to eight months. If approved, the refund is paid to the foreign business’s bank account. The language of correspondence may be German or sometimes English, so many companies use a local tax agent to handle the process even if not mandatory.

16.3 Reciprocity requirements

• As noted, Austria does not impose reciprocity conditions for VAT refunds to non-EU businesses. Some EU countries will only refund VAT to businesses from countries that offer similar VAT refund rights to their own nationals. Austria, however, grants refunds even if the claimant’s country (e.g., the USA) does not have a formal reciprocity arrangement. The only exceptions would be if the business’s home country is on an EU blacklist or lacks adequate administrative cooperation on tax matters – but generally, U.S., Canadian, Australian, etc. companies can all utilize the 13th Directive refund process in Austria. [vatcalc.com]

16.4 Need for fiscal representative

• For VAT refunds (8th or 13th Directive), no fiscal representative is required in Austria, as the foreign business either deals directly via its own tax authority (EU claims) or directly with the Austrian authorities (non-EU claims). The refund process is separate from VAT registration, so the appointment of a fiscal rep (which is required for non-EU businesses registering for VAT – see Section 8) is not applicable just for a refund claim. However, non-German-speaking applicants often engage local firms to assist with refund claims due to language barriers and procedural complexity, even if not legally required. [vatcalc.com]

17. VAT on Digital Services

• VAT on digital services (electronically supplied services, broadcasting, and telecommunications) in Austria follows the EU’s 2015 digital services rules:
• B2C digital services (such as streaming media, downloads, e-books, online software, etc.) supplied to Austrian consumers are taxable in Austria (taxed where the customer is located). Since 2015, a non-resident company providing such services to Austrian private individuals must charge Austrian VAT at the applicable rate (usually 20%) on those sales. To simplify compliance, these suppliers can register under the One-Stop Shop (OSS) scheme (previously MOSS) in a single EU country and report all EU digital services in one return. For example, a U.S. app developer selling to EU customers might register for the non-Union OSS in one Member State rather than registering separately in Austria. [taxually.com] [vatcalc.com]
• B2B digital services follow the normal reverse-charge rule under the main place-of-supply provisions. If an Austrian business or other VAT-able entity receives digital services from a supplier abroad, the Austrian buyer self-accounts for VAT (no Austrian VAT is charged by the seller). Conversely, if an Austrian business sells e-services to business customers abroad, generally the customer’s country’s VAT is applied via reverse charge. Thus, the discussion of “VAT on digital services” usually centers on B2C scenarios and the related OSS simplification.
• It’s important to note that “digital services” (sometimes called electronically supplied services) include things like provision of software, music/film downloads or streaming, e-books, online gaming services, app stores, and other services delivered over the internet with minimal human intervention. These have been subject to customer-location VAT rules for B2C across the EU since 2015. Austria has no special rates for digital services (they use the standard 20% or reduced rates if the content qualifies, e.g. e-books now at 10% just like physical books). [taxually.com]
• Under the EU e-commerce package (2021), Austria also treats online marketplaces/platforms as “deemed suppliers” for VAT on low-value imports and certain domestic supplies to consumers. For example, if a sale of goods below €150 is made via an online marketplace from a non-EU seller to an Austrian consumer, the marketplace can become responsible for charging and remitting Austrian VAT (usually via IOSS or local registration).
• Finally, Austria has some use-and-enjoyment rules (Section 15.9) that ensure certain digital or telecom services to Austrian consumers by non-EU providers are taxed in Austria even if general rules might locate them outside the EU. And like all EU countries, Austria has implemented the 2019–2021 “Netflix tax” expansion of VAT to all digital media subscriptions and downloads consumed in Austria, including those from non-EU vendors, via OSS or direct registration.

18. Distance Selling Rules

• The rules for distance selling of goods (i.e., cross-border B2C sales where a supplier in one country ships goods to a consumer in another country) changed significantly due to the EU e-commerce VAT reforms in 2021. Here’s how the system works with respect to Austria:

18.1 Thresholds for distance sales

• Prior to July 2021, Austria had a distance sales registration threshold of €35,000 per year, meaning an EU vendor selling goods to Austrian consumers had to register for Austrian VAT once annual sales to Austria exceeded that amount. However, as of 1 July 2021, the EU implemented a common threshold of €10,000 for EU-wide cross-border B2C sales of goods and digital services. This means if an EU business’s total B2C sales to all other EU countries exceed €10,000 in a year, then all its subsequent B2C sales to other EU countries (including Austria) become taxable in the customer’s country. Below that threshold, the business can opt to treat those sales as domestic (taxed in its home country). [taxually.com]
• In practical terms, the Austrian €35k threshold is no longer used; any EU business with significant cross-border online sales likely exceeds the €10k pan-EU threshold and thus must charge Austrian VAT from the first sale to Austrian consumers. Non-EU sellers were never eligible for any threshold – they have always been expected to charge VAT at destination on goods shipped to EU consumers (which since 2021 can be done via IOSS for low-value goods).
• Austrian consumers buying from foreign EU websites should now be charged Austrian VAT on their purchases regardless of value (except very small levels of total cross-border sales by the seller under €10k, in which case the seller might be treating the sale as in their own country’s VAT). This change aimed to level the playing field and simplify compliance through the OSS.

18.2 OSS/IOSS participation

• Austria is part of the EU’s OSS (One-Stop Shop) scheme:
• For EU sellers (Union OSS): EU businesses selling to Austrian consumers can use the OSS to report Austrian VAT without a local registration. If they opt into OSS, they apply Austrian VAT on sales to Austrian customers and include those sales in their quarterly OSS return in their home country. Austria then receives the VAT from that OSS clearing mechanism. This covers intra-EU distance sales of goods and B2C services that are taxed in Austria. [vatcalc.com]
• For non-EU sellers (IOSS for imports): If a non-EU company sells goods directly to Austrian consumers and ships them from outside the EU, the IOSS allows charging Austrian VAT at the point of sale for consignments up to €150 in value. The seller (or their EU intermediary) would remit this via a monthly IOSS return. Austria, like all EU countries, recognizes valid IOSS VAT IDs so that such low-value imports can clear customs in Austria with VAT pre-paid, avoiding customs collection. If IOSS is not used, the logistics company will collect Austrian VAT from the customer on delivery along with a small customs processing fee. [vatcalc.com]
• Special arrangements for large online marketplaces: Marketplaces facilitating cross-border sales to Austria may be deemed suppliers and handle the VAT (as mentioned in Section 17), which interacts with OSS/IOSS rules and can eliminate the need for some sellers to register.
• Domestic distance sales (within Austria) do not involve these special rules, as they are just normal local sales subject to Austrian VAT when the seller is Austrian-registered. But cross-border selling into or out of Austria is greatly simplified by the OSS/IOSS. Note that distance selling of goods from Austria to consumers in other EU countries can similarly be handled via OSS (using an Austrian OSS registration to account for foreign VAT), instead of registering in each country.

19. Cash Accounting Scheme

• Austria has a Cash Accounting Scheme (Istversteuerung, or “value upon receipt” taxation), which allows certain businesses to account for VAT on a cash basis (i.e. upon receipt of payment) instead of the standard invoice (accrual) basis. The scheme aims to help small businesses and some specific sectors manage cash flow by only paying VAT once they have received payment from their customers.
• Eligibility and thresholds:
• Generally, businesses with annual turnover up to €110,000 in the previous year can opt for the cash accounting scheme. [marosavat.com]
• Certain sectors or types of taxpayers can use cash accounting regardless of size, for example, freelance professionals, and many farmers and foresters who are not required to keep double-entry accounts. Also, certain small businesses in energy generation and waste disposal qualify. [marosavat.com]
• In some cases, larger businesses up to €2 million turnover can use cash accounting, particularly for certain professions or types of businesses explicitly allowed by law. (This typically includes liberal professions and agricultural businesses.) [vatcalc.com]
• If a business is part of a VAT group or mainly makes zero-rated supplies, other conditions may apply; and businesses above the threshold must generally use normal accrual accounting for VAT.
• Under the cash accounting scheme, a business will declare output VAT when customers pay their invoices (not when invoices are issued) and claim input VAT when it actually pays its suppliers. This can delay the tax payment on receivables, which is beneficial for cash flow. However, if a customer doesn’t pay, no output VAT is due (thus integrating somewhat with bad debt relief). If a customer partially pays, only that portion of VAT is declared.
• Businesses must apply (usually at the time of registration or the beginning of a year) to use the cash accounting method. They also need to keep careful track of payments received and made. One must switch to standard accrual accounting once no longer eligible (e.g., if turnover exceeds the threshold).

20. VAT-Registered Cash Tills (Point-of-Sale Requirements)

• Austria has implemented strict requirements for cash registers (electronic point-of-sale systems) to combat tax evasion in cash transactions. The Registrierkassensicherheitsverordnung (RKSV), introduced in 2017, mandates that businesses above certain turnover thresholds use secure, tamper-evident cash register systems that issue receipts with unique identification codes.
• Threshold and scope:
• Businesses with annual cash sales (cash or cash-equivalent payments) above a low threshold are required to use a fiscalized cash register. Initially, the threshold was total revenue above €15,000 and cash transactions over €7,500 per year.
• There is an exemption for certain small or seasonal businesses (sometimes called the “cold hands rule,” benefiting farmers’ markets, Christmas markets, etc.): previously such businesses needed a cash register only if annual revenue exceeded €30,000. Effective 1 January 2026, this exemption threshold is being raised to €45,000 in annual revenues, meaning very small cash-based businesses will be outside the mandate. [vatcalc.com]
• Once a business crosses the threshold, each point of sale must have a secure electronic cash register that meets technical specs: it should create a tamper-proof log of each sale and generate a receipt with a unique digital signature and QR code. The digital signature device is registered with the tax authority, allowing the tax office to verify that no receipts are altered or deleted. [vatcalc.com], [vatcalc.com]
• Every cash sale must produce a customer receipt (which can be paper or electronic) with the required details and QR code. Customers can scan the QR code to verify the receipt’s authenticity online.
• Records: The electronic journal of the cash register must be retained and, on request, provided to the tax authorities. Regular audits of the system’s security features are conducted.
• New developments: Starting 1 October 2026, Austria will allow businesses to issue digital receipts (e-receipts) instead of paper, even for in-person transactions, if the customer agrees. The digital receipt (e.g., via QR code or electronic transmission) will fulfill the receipt obligation. This modernization aims to reduce paper use and improve convenience, while maintaining the anti-fraud controls (the digital receipts will still include the secure QR code and signature). The core RKSV requirements remain in force – transactions must be recorded and signed in real time at the point of sale, and the data securely stored. [vatcalc.com]
• Non-compliance with the cash register rules (failure to use a required register or issuance of receipts) can result in penalties, and in cases of intent to evade tax, even criminal charges. Therefore, any business operating retail or hospitality outlets in Austria should ensure they have compliant cash register systems once they hit the relevant turnover threshold.

21. Statute of Limitations

• The statute of limitations for VAT in Austria is generally five years. This means the tax office can audit and make adjustments to VAT declarations for up to five years from the end of the year in which the tax became due. After that period, assessments are typically time-barred (cannot be changed), providing certainty to taxpayers. [vatcalc.com]
• However, there are circumstances that can extend the limitation period:
• If a tax audit or investigation is initiated, the period may be extended to at least seven years, and in cases involving tax evasion (fraud), it can be extended up to ten years or more in severe cases, pursuant to the Austrian Federal Fiscal Code.
• Filing an appeal or self-disclosure can also extend the period for finalizing an assessment.
• The five-year limitation aligns with many EU countries’ practices. Taxpayers are required to keep VAT records (invoices, books, etc.) for seven years (and 10 for property-related records) as mentioned in Section 14.6, which is longer than the basic audit window to cover potential extensions and audit cycles.

22. VAT Return Filing

• VAT-registered businesses in Austria must file periodic VAT returns and pay any tax due by the stipulated deadlines. Austria’s compliance rules cover the frequency of filing, the method (electronic filing via FinanzOnline), deadlines for submission and payment, treatment of credits, and procedures for correcting errors. There are also special considerations for non-resident traders.

22.1 Filing frequency

• The default filing frequency for VAT returns in Austria is monthly (12 returns per year). However, businesses with lower turnover are allowed to file quarterly: [vatcalc.com]
• If the annual turnover in the previous year was €100,000 or less, the business may opt (or be directed by the tax office) to file quarterly VAT returns instead of monthly. This reduces administrative burden. [vatcalc.com]
• If turnover exceeds €100,000, monthly filing is obligatory. Nonetheless, even below the threshold, a business can still choose to file monthly if it prefers (some do this to accelerate VAT refunds).
• In addition to monthly/quarterly filings, all businesses must file an annual VAT return summarizing the year’s transactions and final tax calculation. The annual return is mostly a reconciliation and does not itself trigger payment (any due should have been paid via the periodic filings, but if a balance remains it must be settled with the annual return). [taxually.com]
• Certain special cases: Newly registered businesses may be placed on quarterly filing by default if expected turnover is below the threshold. Very large businesses might have additional reporting (e.g., part of SAF-T, see Section 23.4).

22.2 Method of filing

• Electronic filing is compulsory. All Austrian VAT returns must be submitted online through the FinanzOnline electronic portal. Paper returns are generally not accepted (except in rare cases such as certain foreign businesses without internet access, but even those are increasingly required to use digital means or authorized agents). Businesses need to obtain FinanzOnline access credentials upon registration. [taxually.com]
• Payments of VAT liabilities are also made electronically (bank transfer to the tax office’s account, using the specific reference information from the tax office).

22.3 Deadlines for filing and payment

• The standard deadline for periodic VAT returns in Austria is the 15th day of the second month following the tax period:
• For monthly filers, each month’s VAT return is due by the 15th of the second following month. For example, the January return is due by March 15, and so on. [fiscal-req…ements.com]
• For quarterly filers, the Q1 (Jan–Mar) return is due by May 15, Q2 by Aug 15, etc., following the same rule.
• The annual VAT return is due by June 30 of the following year (when filed electronically). If a taxpayer were to file a paper annual return (not common, and only certain taxpayers without electronic access can do so), the deadline is earlier (April 30). [amavat.eu]
• VAT payment is due on the same date as the filing deadline. Thus, any VAT owed for a period must be paid by the 15th of the second month after that period. Payments are typically made via bank transfer to the tax office’s account (with the reference number so it’s attributed to your VAT number and period). If the 15th falls on a weekend or Austrian public holiday, the deadline usually extends to the next business day.
• Austrian tax authorities may grant extensions in specific cases if requested – particularly for the annual return, tax advisors often get extensions (sometimes until Sept 30 or even later) to file on behalf of clients. However, any VAT due should still be paid by the standard deadlines to avoid interest.

22.4 Pre-filled return availability

• Currently, pre-filled VAT returns are not provided by the Austrian tax authority. Taxpayers (or their accountants) must compile all necessary data on sales and purchases and enter it into the FinanzOnline system manually or via software. While some information (like identity details) is pre-populated on the online form, the figures (turnover, VAT, etc.) are not.
• That said, Austria is exploring ways to leverage increased electronic invoicing and SAF-T data (see Section 23.4) to potentially pre-fill or automate parts of the VAT return in the future, in line with the EU’s digital reporting initiative. As of 2026, businesses should still plan on preparing and filing their VAT returns from their own records.

22.5 Handling of VAT credits/refunds

• If a periodic VAT return results in a negative balance (VAT credit) – meaning input VAT exceeds output VAT for that period – the taxpayer has a right to a refund of the excess VAT. In Austria, the process for obtaining a refund is typically as follows:
• The taxpayer indicates the overpayment in the VAT return form (there’s a specific field to claim a refund or credit carryforward).
• By default, the credit will be carried forward to offset future VAT liabilities, unless a refund is explicitly requested. To get a cash refund, the taxpayer should file a separate electronic refund request (this is usually done via FinanzOnline alongside or after filing the return). [vatcalc.com]
• Upon receiving a refund claim, the tax authorities may review the return and potentially ask for additional details or supporting documentation (especially if the refund amount is large). If everything is in order, the refund is typically processed and paid out to the business’s bank account.
• Austria generally processes VAT refunds in a timely manner, though if an audit or further checks are initiated, the refund may be held until those are resolved. If a refund is delayed beyond a certain time (typically 4 months after the claim), the taxpayer may be entitled to interest.
• Foreign businesses with Austrian VAT credits would typically reclaim them via the 8th/13th Directive mechanisms discussed in Section 16, unless they are directly registered and filing in Austria.

22.6 Correction of errors

• If a business discovers an error in a VAT return (such as an incorrect amount or a missed invoice), Austrian law allows for corrections:
• A taxpayer can submit a revised return (correction return) for the period in which the error occurred, as long as it’s the first correction for that period. The corrected return replaces the original filing and should include the correct figures. Generally, a correction can be made any time within the legal amendment period (see Section 21 on statute of limitations). [vatcalc.com]
• If an error is discovered after a correction has already been made (i.e., a second correction for the same period is needed), or after an audit has started, then a formal process is required. The taxpayer should inform the tax office in writing of the needed changes (often via a letter or self-disclosure) to adjust the figures.
• Voluntary self-disclosure: If the error led to an underpayment of VAT, Austrian law encourages proactive correction by allowing taxpayers to make a self-disclosure (Selbstanzeige). If done properly before the tax authority contacts the taxpayer, this can eliminate or reduce penalties (though interest on late payment may still apply).
• Small arithmetical errors or adjustments can sometimes be corrected in the next VAT return (for example, a minor under-declaration can be added to the next period’s output VAT with an explanatory note), but best practice is to correct the specific period via a revised return to ensure transparency.

22.7 Non-resident filing specifics

• Non-resident businesses registered for Austrian VAT have largely the same filing obligations and deadlines as resident businesses. They must file monthly or quarterly returns based on the same turnover criteria, and annual returns by June 30. The main difference is administrative: most foreign businesses are assigned to the Graz-Stadt tax office and may need a fiscal representative (if from outside the EU – see Section 8). Non-residents file via FinanzOnline as well, but initial registration might require paper forms (U15 form for registration). [vatcalc.com] [taxually.com]
• One special point: if a foreign business is only making supplies where the reverse charge applies (i.e., all its sales in Austria are to VAT-registered customers who self-account for the VAT), then the foreign business often need not register at all in Austria. This reduces filing burdens. However, if that foreign business also incurs local Austrian VAT (without making taxable supplies), they’d use the refund process rather than registering (as discussed in Section 7 and 16). [vatcalc.com]

23. Other Filings

• Apart from the main VAT return, businesses in Austria may have additional VAT-related filing obligations, including EU Sales Lists, Intrastat declarations, annual returns, and potential future digital reporting (SAF-T or similar).

23.1 EU Sales List (ECSL)

• Austrian VAT-registered businesses must file an EU Sales List (ESL, or “Zusammenfassende Meldung”) to report certain exempt cross-border sales:
• Which transactions: All intra-Community supplies of goods from Austria to other EU countries (i.e., B2B sales of goods that are zero-rated under VAT rules) must be listed, including the customer’s VAT number and total value of goods sold to them in the period. Additionally, B2B supplies of services to EU customers that fall under the general rule (where the customer is taxed via reverse charge) also need to be reported in the ESL, as per EU law changes in 2010.
• Frequency: The frequency of ESL filings in Austria matches the VAT return frequency. If the business files VAT monthly, it must file ESL monthly; if it files quarterly VAT returns, the ESL can be filed quarterly. (However, if a business has very high intra-EU sales, the tax office might still require monthly ESLs for more frequent monitoring.) [vatcalc.com]
• Due date: ESLs are due by the end of the month following the reporting period (as opposed to the 15th for VAT returns). For example, an ESL for Q1 (Jan–Mar) is due by April 30. [vatcalc.com]
• Format: The ESL is filed electronically via FinanzOnline. It requires listing each customer’s VAT ID and the total value of goods and services supplied to that customer for the period. No detailed line-by-line listing is needed, just the totals per customer per category of supply.
• Penalties: If an ESL is filed late or not at all, Austria can impose a penalty. The standard penalty is up to 1% of the unreported amount (tax base), up to a certain limit. Fines can be contested or reduced in some cases, but it’s important to comply to avoid issues. [fiscal-req…ements.com]

23.2 Intrastat

• Intrastat declarations are required for businesses involved in intra-EU trade in goods, to collect statistical data (separate from tax data). If an Austrian business’s dispatches (exports to the EU) or arrivals (imports from the EU) exceed the annual threshold, Intrastat becomes obligatory:
• Threshold: As of 2024, the threshold is €1,100,000 for both arrivals and dispatches in a calendar year. (It was previously €750,000; the threshold is periodically adjusted. Businesses should confirm the current threshold with Statistik Austria, the agency handling Intrastat.) [vatcalc.com]
• Reporting frequency: Intrastat declarations are monthly, covering the aggregated shipments or receipts of goods for the month.
• Due date: Intrastat reports must be submitted by the 10th working day of the month following the reporting month. For instance, January’s Intrastat is due by February 10. [vatcalc.com]
• Submission: Reports are filed with Statistik Austria (Austria’s statistical office), often via their online portal. They require details such as commodity codes (CN8), values, quantities, partner country, delivery terms, and transport modes.
• Detailed reporting: If a company’s annual intra-EU trade exceeds a higher threshold (historically around €12 million), more detailed information (like quantity, net weight, and country of origin for each item) must be provided in Intrastat. [taxually.com]
• Penalties: While Intrastat is a statistical declaration, failure to file or inaccuracies can lead to penalties under Austrian statistics law. It’s important to comply, though the fines are generally modest for first-time or minor offenses.

23.3 Annual returns

• As noted in Section 22.1 and 22.3, Annual VAT Returns (Jahressteuererklärung) must be filed by June 30 of the following year (if electronic) for all VAT-registered entities. This annual return consolidates the information from the periodic returns and includes any annual adjustments (e.g. partial deduction adjustments, global corrections). It essentially reconciles the total VAT payable/refundable for the year. [amavat.eu]
• If the sum of monthly/quarterly filings throughout the year was incorrect, the annual return is the chance to make corrections. For example, if additional VAT is found to be due for the year, it must be paid with the annual return. Conversely, if an overpayment is discovered, a refund can be claimed via the annual return (though typically ongoing credits would be refunded or carried forward before year-end).
• The annual return must be filed even if the periodic returns have all been submitted; not filing it can result in penalties. The extended deadline (June 30 electronic) offers extra time to gather year-end adjustments. Tax advisors often handle the annual return in conjunction with annual accounts.

23.4 SAF-T or other digital reporting requirements

• Austria has a form of Standard Audit File for Tax (SAF-T) framework, though currently it operates on a demand-driven basis:
• Austria introduced SAF-T in 2009, following the OECD’s standardized format for electronic exchange of tax data. Under current rules, the tax authorities can request an Austrian business to submit its accounting data in SAF-T format during a tax audit or investigation. The Austrian SAF-T (called Standardisierte Buchhaltungsdaten locally) is an XML schema capturing detailed data (general ledger entries, invoices, stock movements, etc.) from a company’s accounting system. [vatcalc.com]
• While there is no periodic SAF-T filing requirement yet (unlike in some countries like Poland where SAF-T is a monthly obligation), Austria has been considering expanding digital reporting. The government announced plans to relaunch and modernize the SAF-T system in March 2024, possibly adding a mandatory regular submission of SAF-T data to supplement VAT returns. This could serve as an alternative to full e-invoicing implementation, ensuring the tax authority gets detailed transaction data in real-time or near-real-time. [vatcalc.com]
• Separately, as part of the EU’s ViDA initiative, Austria might also implement an automated digital reporting for cross-border transactions by 2028, which could effectively replace the EU Sales List (as noted in Section 14.3) with a transaction-based reporting system. Austria’s stance has been supportive of such digitization, but final details are pending EU-wide decisions. [artus.at]
• As of early 2026, outside of specific cases (like B2G e-invoicing and on-request SAF-T), there is no continuous transactional data reporting or nationwide e-invoicing mandate for B2B in Austria. Businesses should watch for upcoming legislation in 2024–2027 that will outline new digital reporting obligations in line with the EU’s timeline. Early preparation (for instance, upgrading ERP systems to handle e-invoices and SAF-T exports) is recommended. [artus.at]

24. Penalties and Interest

• Austria’s tax law provides for various penalties and charges to encourage timely compliance:

24.1 Late filing penalties

• Failure to submit a VAT return on time (or at all) can lead to a penalty of up to 10% of the undeclared VAT due for that period. For example, if a taxpayer does not file a return and €10,000 VAT was owed, the tax office could impose a fine of up to €1,000. This is often referred to as a late filing surcharge. The exact amount may depend on the circumstances; if the return is significantly late or if the taxpayer has a history of non-compliance, higher penalties within the allowed range may be applied. In cases of fraudulent evasion, much heavier penalties can apply, including fines that are a multiple of the tax evaded and potential criminal charges. [fiscal-req…ements.com]

24.2 Late payment interest

• Paying VAT late triggers a fixed surtax (interest charge) of 2% of the amount of VAT paid late. This is typically imposed as soon as the payment is late, on the whole amount of tax that was due. (This 2% is a one-time surcharge, not an annualized interest rate.) If the payment is only slightly late and the amount is small, the authorities may show leniency, but by law 2% is added on any late payment of VAT. This is in addition to the late filing penalty; so a taxpayer who both files and pays late could incur both the 10% and 2% charges. [fiscal-req…ements.com]
• If the tax remains unpaid for longer, additional interest may accrue, and the tax office can take enforcement actions. Austria does not have a separate daily interest rate for late VAT like some countries, relying instead on this 2% surcharge plus potential fines for non-payment. However, interest at a standard rate might apply to very late payments or as part of a payment plan.

24.3 Other fines

• Other VAT-related penalties in Austria include:
• Incorrect invoicing or VAT identification issues: Failure to issue an invoice when required, or issuing an invoice that improperly shows VAT (e.g., charging VAT when not registered), can result in penalties. For instance, if a non-registered business issues an invoice with VAT, it can be liable to pay that VAT and face fines.
• European Sales List (ESL) violations: Not filing or late filing of the ESL (recapitulative statement) can trigger a penalty of up to 1% of the unreported sales (with a cap in place). The standard fine for a missing ESL in Austria is often 1% of the value of unreported transactions, up to €2,200 per ESL. [fiscal-req…ements.com]
• Intrastat non-compliance: Penalties can also apply for failing to submit Intrastat declarations or submitting them late/inaccurately. These are usually smaller (since Intrastat is not a tax as such) – typically fines in the range of a few hundred euros, depending on the severity and frequency.
• Persistent non-compliance: Repeated failures can lead to higher penalties or audits. The tax authority can estimate your VAT and issue an assessment if you fail to file.
• Fraud and evasion: Deliberate VAT evasion is a criminal offence. Austria has strict laws against tax fraud; offenders can face large fines and even imprisonment. For example, involvement in carousel fraud or issuing fake invoices would be prosecuted under criminal tax law in addition to standard penalties.
• It’s always best to be proactive if a mistake or delay has occurred. Austrian law allows mitigation of penalties in certain cases, especially if a taxpayer voluntarily discloses an error before tax authorities discover it. Interest and surcharges, however, often still apply to compensate the delay in payment.

25. Other Notable VAT Features

• Finally, here are other notable features and special schemes in the Austrian VAT system that businesses should be aware of:
• Limited “Split Payment” regime for certain transactions: Austria operates a form of split payment mechanism for some government-related transactions with foreign suppliers. In specific cases, when an Austrian public authority or certain designated entities purchase from a non-resident supplier, they may be required to withhold the VAT amount and pay it directly to the tax authority instead of to the supplier. This ensures VAT is collected even if the foreign supplier fails to remit it. This is not a general regime (unlike Italy’s or Poland’s broader split payment systems), but it applies in limited scenarios, often to government contracts or purchases from non-established suppliers in sectors prone to fraud. Businesses dealing with public sector clients should check if this applies. [vatcalc.com]
• Pre-registration VAT recovery: As mentioned in Section 15.1, Austria allows new registrants to recover VAT on purchases made before obtaining a VAT number, for up to 5 years prior to registration (for goods to be used in the business) and up to 6 months for services, under certain conditions. This helps startups and investors by not penalizing pre-trading expenses – it’s a generous feature (some countries have shorter look-back periods). [vatcalc.com]
• Tour operators margin scheme (TOMS): Austria applies the special VAT scheme for travel agents and tour operators to both B2C and B2B transactions – which is a broader application than in many countries (where it’s often B2C only). Under this scheme, an Austrian-established travel organizer does not charge standard VAT on the full price of travel packages; instead, they pay VAT only on their margin (the difference between the package price and the costs of travel services) at the standard rate. The customer cannot reclaim this VAT. If an Austrian travel company sells a package to another business (B2B), Austrian TOMS still applies (no VAT on the invoice, margin taxed internally), which is unusual in that most EU states exclude B2B sales from TOMS. Foreign travel companies without an Austrian establishment generally do not use Austrian TOMS (they’d use TOMS in their own country if in the EU). [marosavat.com]
• Compliance culture and invoicing habits: Austria is known for a relatively strict compliance environment. For instance, consumption tax postings (like restaurant bills) often include VAT, and cash registers, as discussed, are closely regulated. Sequential invoicing is taken seriously – gaps in invoice numbers can raise flags in audits.
• Place of supply simplifications: Austria adopts the EU Triangulation simplification for three-party cross-border transactions to avoid multiple VAT registrations in chain transactions. If an Austrian company is the intermediary in a three-party EU chain (A -> B -> C, with goods moving from A to C), Austria allows simplification so that B (Austrian co.) doesn’t have to register in C’s country – instead C does a reverse charge. This is standard EU practice but a crucial simplification for certain business models.
• Environmental taxes and VAT: Austria plans to introduce a plastic packaging fee on imports (from Oct 2026) to offset revenue lost from the food VAT cut. While not a VAT, this is noteworthy as it coexists with VAT and will be collected likely alongside customs/VAT for imports, affecting e-commerce. [vatcalc.com], [vatcalc.com]
• VAT and real estate: Austria has an option to tax certain real estate transactions that would otherwise be exempt (e.g., landlords can opt to charge VAT on commercial rentals to be able to deduct input VAT on property expenses). The option to tax (Besteuerungsoption) must be communicated to the tax office and typically documented on the invoice (e.g., “USt optiert”). Real estate transactions are complex and have special rules (e.g., if you opt to tax rent to a VAT-exempt tenant, the option is invalid and no VAT can be charged).
• Interaction with EU VAT in the Digital Age (ViDA): Austria is preparing for the forthcoming changes under the ViDA package. These include the possible implementation of a single EU VAT registration (which would allow, in the future, businesses to use their home VAT number for certain cross-border activities without multiple registrations). This could simplify doing business in Austria for foreign companies, but the details and timeline of these changes (expected in 2025–2028) are still being finalized at the EU level. Additionally, Austria and other member states will be updating laws to accommodate platform economy rules (making online platforms collect VAT in some cases) and expanding digital record-keeping requirements. Businesses should stay informed on these developments to remain compliant. [artus.at]
• This guide has covered the full landscape of Austrian VAT as of early 2026, including standard obligations and special rules. Austria’s VAT system, while complex, is in many ways typical of EU VAT regimes – meaning that once one becomes familiar with EU VAT concepts (like reverse charge, cross-border supplies, input tax deductions, etc.), applying them in the Austrian context is straightforward. However, the devil is in the details, and Austria has its particular thresholds, deadlines, and administrative practices that must be observed. By understanding the above key aspects – from registration through compliance to reporting and recent changes – businesses can ensure they meet Austrian VAT requirements and take advantage of available schemes and reliefs. It’s always advisable to consult up-to-date resources or professional advice for specific transactions, especially in this time of evolving VAT rules both in Austria and across the EU (with digital transformation on the horizon). [fiscal-req…ements.com], [fiscal-req…ements.com]