Summary
- ▸ The BFG (18 March 2026, RV/7100794/2026) rules: an application for regular taxation (Form Verf. 24) filed within the scope of the business registration constitutes an express written declaration of waiver of the small business exemption under § 6(1) Z 27 of the Austrian VAT Act.
- ▸ The declaration of waiver under § 6(3) of the Austrian VAT Act binds the entrepreneur for at least five calendar years.
- ▸ A subsequently asserted declaration error does not eliminate the legal effects of the option, unless the declaration of waiver is withdrawn before the VAT assessment of the option year becomes final or duly revoked.
Article
With its decision of 18 March 2026 (RV/7100794/2026), the BFG provided important procedural clarification regarding the small business scheme. In the specific case, the entrepreneur had filled in the Form Verf. 24 as part of the tax business registration and thereby declared the option to regular taxation (waiver of the small business exemption). Later, he claimed a declaration error and sought retroactive application of the small business scheme.
The BFG clarifies:
- Form of the waiver declaration: the application for regular taxation in Form Verf. 24 is an express, written declaration and satisfies the formal requirements of a waiver declaration under § 6(3) of the Austrian VAT Act.
- Binding effect: the entrepreneur is bound by his waiver for at least five calendar years. The period is calculated from the beginning of the first calendar year for which the declaration applies — an identical binding rule exists in Germany under § 19(3) sentence 3 of the German VAT Act.
- Declaration error: an alleged declaration error does not help. A withdrawal of the waiver declaration is only possible if it occurs before the VAT assessment of the option year becomes final, or a timely revocation is declared as of the beginning of a subsequent calendar year.
Practical relevance: Particularly in the start-up phase, the option to regular taxation is often chosen “in passing” when filling in Form Verf. 24 — often without a careful cost-benefit analysis. Entrepreneurs and their advisors should always make the waiver consciously and based on liquidity / input VAT considerations. A later correction is only possible within a narrow time window until the VAT assessment of the option year becomes final. After that: bound for five years.
External links
- https://www.ris.bka.gv.at/NormDokument.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10004873&Paragraf=6
- https://service.bmf.gv.at/service/anwend/formulare/show_mast.asp?s=VERF24
- https://findok.bmf.gv.at/
- https://www.bmf.gv.at/
