Austria VAT (Umsatzsteuer) Guide : Rates, Registration & Compliance

Austria VAT (Umsatzsteuer)

Situated in Central Europe, Austria operates a comprehensive VAT system known as Umsatzsteuer. As an EU member, Austrian VAT rules follow the European Union’s directives, but also feature specific national regulations.

This guide breaks down the essential VAT information that businesses both domestic and foreign need to know, including tax rates, registration rules, VAT numbers, invoicing requirements, exemptions, and rules for international trade.

🔍 What is VAT in Austria?

Value Added Tax (VAT), locally called Umsatzsteuer, is a tax applied to goods and services at each stage of production and distribution, but the final cost is borne by the end consumer.

Businesses registered for VAT collect this tax on behalf of the government, deducting any VAT they paid on their own purchases (input tax). The Federal Ministry of Finance (BMF) oversees VAT administration in Austria, ensuring compliance with EU legislation.

📊 VAT Rates Applicable in Austria

Austria uses three primary VAT rates based on product or service type:

Standard Rate: 20%

This rate covers most goods and services like cars, electronics, consulting, and apparel.

Reduced Rate: 13%

Applies to specific items such as hotel stays, cultural events, and selected agricultural products.

Reduced Rate: 10%

Used for everyday essentials including food, books, newspapers, public transport, and medicines.

📝 Who Needs to Register for VAT in Austria?

Local Enterprises:

Any Austrian business whose taxable sales exceed €35,000 annually must register for VAT.

Foreign Entities:

Overseas companies supplying goods or services within Austria, importing products, or storing stock locally are required to register, regardless of turnover.

Small Business Exemption:

Smaller businesses under the threshold may request an exemption but cannot reclaim VAT on purchases.

🔢 Format of Austrian VAT Number

A VAT number in Austria starts with “ATU” followed by 8 digits.

• Example: ATU12345678

This identifier must be present on invoices, tax filings, and official correspondence.

🧾 Key Invoice Requirements under Austrian VAT Law

Invoices need to include the following details to be valid:

• Invoice date and number
• Full names and addresses of both supplier and customer
• Supplier’s VAT number
• Description of goods or services supplied
• Net price, VAT rate applied, and VAT amount
• Total invoice sum
• Delivery date if different from invoice date
• Buyer’s VAT number for B2B intra-EU transactions

Electronic invoicing is legally accepted and widely practiced.

💡 Sample VAT Calculation

If you sell an item priced at €1,000 with a 20% VAT:

• VAT amount = €1,000 × 20% = €200
• Total amount payable = €1,000 + €200 = €1,200

The customer pays €1,200, and the business remits €200 VAT to authorities.

🗓️ VAT Return Filing & Payment in Austria

How Often to File:

• Monthly filings for businesses with turnover over €100,000
• Quarterly filings for smaller enterprises
• Some small businesses file annually

Deadlines:

VAT returns must be filed and paid by the 15th day of the second month after the tax period ends.

For example, returns for January must be submitted by March 15.

Filing Platform:

Returns are submitted electronically through Austria’s FinanzOnline tax portal.

🌍 Cross-Border VAT Regulations

Intra-EU Business to Business (B2B):

These sales are zero-rated if the buyer has a valid VAT number. Sellers must report such sales in the EC Sales List.

Intra-EU Business to Consumer (B2C):

Distance sales exceeding the €10,000 EU threshold require charging VAT in the buyer’s country via the One Stop Shop (OSS).

Imports from Non-EU Countries:

Import VAT applies at Austrian rates and can be reclaimed by registered businesses.

Exports outside the EU:

These are zero-rated but must have proper export documentation.

❌ VAT Exemptions in Austria

Certain goods and services are exempt from VAT, including:

• Healthcare and dental care services
• Education and training programs
• Banking and financial services
• Insurance services
• Rental of residential properties

Note: Businesses exclusively engaged in exempt supplies cannot claim input VAT refunds.

🌐 Refund of VAT for Non-Residents

Businesses outside Austria paying Austrian VAT can apply for refunds:

• EU-based companies apply via their home country’s VAT refund system.
• Non-EU companies must file claims directly with Austrian tax authorities and typically appoint a fiscal representative.
• Applications must be submitted by September 30th of the year following the VAT incurred.

✅ Checklist for VAT Compliance in Austria

• Register before starting taxable operations
• Issue proper VAT invoices with required information
• File VAT returns and pay taxes promptly
• Keep detailed VAT records for 7 years
• Verify EU customers’ VAT numbers via the VIES system
• Use the OSS for EU-wide digital and distance sales

📌 Final Summary

Austria’s VAT system aligns closely with EU rules but has important national specifics. Both local and foreign businesses must understand these details to remain compliant and avoid fines.

For quick calculations, an Austria VAT calculator can help apply current tax rates accurately.