Key takeaways
- Understand Austrian VAT rates and their applicability to different goods & services.
- Adhere to registration, compliance, recordkeeping & invoicing requirements for successful business operations in Austria.
- Be aware of penalties imposed by tax authorities for non-compliance with VAT rules.
In short: The standard VAT rate in Austria is 20%. Reduced rates of 4.9%, 10% and 13% apply to certain goods and services, and some supplies are zero-rated or exempt. Businesses above the registration threshold must register, file VAT returns via FinanzOnline, issue compliant invoices and keep records, or they risk penalties.
Austria has several VAT rates, registration and compliance rules, and specific rules for electronic services and marketplace operators. You need to stay informed and compliant when you do business in Austria. This guide explains the Austrian VAT landscape and how to stay compliant with the Austrian tax authorities.
What are the VAT rates in Austria?
Austria has a standard VAT rate of 20%, plus reduced and zero rates for specific goods and services. Austria follows the European Union's VAT directive. Let's take a closer look at each rate. For a full country overview, see our Austria VAT manual.
What is the standard VAT rate in Austria?
The standard VAT rate in Austria is 20%. It applies to most goods and services that don't qualify for a reduced or zero rate. If you sell products or services at the standard rate, you must charge your customers 20% VAT and pay it to the tax authorities. For a closer look, see Portugal VAT Compliance - What You Need to Know.
What are the reduced VAT rates in Austria?
Austria applies reduced VAT rates of 10% and 13% to certain categories of goods and services. Since 1 July 2026, a new 4.9% rate also applies to selected basic foods, such as milk, eggs, bread and many fruits and vegetables.
10% VAT: This reduced rate applies to items such as food, non-alcoholic beverages, restaurant and catering services, newspapers, books, and e-books.
13% VAT: This reduced rate applies to goods and services like food, admission to sporting and cultural events, wine production, and agricultural supplies.
You need to know these reduced rates and apply them correctly to your transactions. This keeps you compliant with Austrian VAT law.
What is the zero rate (0%)?
Zero-rated supplies are subject to a VAT rate of 0%. You don't charge VAT on these supplies, but you can still claim VAT refunds on your input costs. Zero-rated supplies typically include exports of goods and certain international services. We cover this in more detail in VAT Rates Ireland - What You Need to Know.
What are exempt supplies?
Exempt supplies are not liable to VAT. You charge no VAT on them, and you can't reclaim any input VAT. Examples of exempt supplies in Austria include health and financial services.
Who must register for VAT in Austria?
Businesses that exceed the annual VAT registration threshold must register for VAT in Austria. The threshold is €55,000 in gross annual turnover for domestic transactions and €10,000 in annual turnover for distance selling. Thresholds may change, so always check the current threshold with the Austrian tax authorities.
Once you register, you get a VAT identification number (UID). You must include it on every invoice you issue.
How do you get an Austrian VAT number?
To get an Austrian VAT number, gather your documents and apply to the Austrian tax authorities. You'll need proof of business registration, identification, and financial information. You can submit your application to the Austrian tax authorities online or on a paper form. Once your application is approved, you receive your VAT number. You can then collect and pay VAT on your taxable transactions in Austria.
Keep accurate records for tax reporting and follow Austrian VAT rules. Specific requirements and procedures can vary. For the latest information, talk to a tax advisor or visit the Austrian tax authorities' website.
When are VAT returns due in Austria?
Austrian VAT returns are due on the 15th of the second month after the period ends. Austria has these reporting periods:
- Monthly VAT returns, due on the 15th of the second month following the period end.
- Quarterly VAT returns, due on the 15th of the second month following the period end.
- Annual VAT return, summarizing all transactions throughout the year, due by 30th June of the subsequent year.
You file VAT returns electronically via the Austrian FinanzOnline portal.
Keep up to date with these filing rules and deadlines. This keeps you VAT compliant and helps you avoid penalties.
What are the invoicing and recordkeeping rules?
Austrian VAT invoices must contain specific details, and you must keep records for set periods. Proper invoicing is crucial for VAT compliance in Austria. VAT invoices must include:
- The word "Rechnung" (invoice) prominently displayed
- The seller's and buyer's (if applicable) VAT numbers
- Date of issue
- A unique invoice number
- Description of goods or services provided
- Quantity and unit price
- VAT rate applied
- Total amount due, including VAT
- Currency used
You must keep invoices and related documents for seven years. Invoices linked to property must be kept for twelve years, and for certain properties up to 22 years. You can keep records outside Austria, but they must be readily available. You can keep Austrian VAT records in electronic or paper form.
Keep accurate and complete VAT records for the full retention period. Following these recordkeeping and invoicing rules keeps you compliant with the Austrian tax authorities. It also lowers your risk of penalties and enforcement action.
How does Austrian VAT apply to electronic services?
Austria has specific VAT rules for electronic services sold to consumers (B2C) and to businesses (B2B). Electronic services are now a big part of business, so these rules matter to many sellers.
B2C electronically supplied services
For B2C electronically supplied services, Austria follows the EU VAT rules. Below a threshold of €10,000, you charge VAT where the seller is based. Examples of B2C electronically supplied services subject to VAT in Austria include:
- Digital downloads of music, movies, and e-books
- Online gaming and gambling services
- Online courses and educational services
- Streaming services for movies, TV shows, and music
- Software and mobile app downloads
- Web hosting and cloud storage services
If you provide B2C electronically supplied services, keep track of this threshold. Then apply the correct VAT rules and rates.
B2B electronically supplied services
B2B electronically supplied services in Austria fall under the reverse charge mechanism. This moves the duty to report the VAT from the supplier to the customer. Examples include telecommunications, broadcasting, software downloads, online advertising, and website hosting.
The reverse charge mechanism makes VAT reporting simpler for B2B suppliers of electronic services in Austria. You still need to understand how it works, along with the VAT rules and rates. This helps you account for VAT correctly and stay compliant. Related reading: Norway VAT Rates and Compliance Explained 2024.
What VAT obligations do marketplace and platform operators have?
Marketplace and platform operators in Austria have VAT obligations for both goods and services. These rules came with the growth of ecommerce and digital marketplaces.
Supply of goods
For goods, Austria follows EU VAT rules for marketplace operators such as Amazon. They have specific duties to collect and pay VAT. As of July 2021, online marketplaces are treated as if they received and supplied the goods for VAT purposes. This makes them liable for VAT on some of their sellers' transactions.
Marketplace operators in Austria must:
- Collect and remit VAT on transactions they facilitate if the underlying seller is not required to collect tax.
- Obtain sellers’ VAT numbers.
- Report pertinent information on supplies of goods and services.
Supply of services
Platform operators providing services in Austria follow the standard VAT rules and rates. As of July 1, 2021, these platforms no longer have recording obligations under the Austrian VAT Act 1994. They now fall under the general VAT rules.
What are the penalties for late filing in Austria?
Late VAT filing in Austria can cost 10% of the VAT due, plus 2% of the VAT due if you also pay late. Breaking Austrian VAT rules can lead to penalties and enforcement action by the Austrian tax authorities.
Penalties from the Austrian Tax Authority can range from fines to criminal charges.
Track your VAT filing deadlines and reporting periods to avoid these penalties. Accurate records and on-time VAT returns help you stay compliant and lower your risk.
Conclusion
Austrian VAT compliance means knowing the rates, invoicing rules, and filing procedures. Getting these right helps you avoid penalties and keep a good relationship with the tax authorities.
Watch for changes in VAT rules, as tax laws change over time. Professional advice and staying informed help you manage your VAT obligations in Austria.
Do you need help with your VAT compliance? Book a free call with one of our VAT experts to find bespoke solutions for your business, optimize your VAT costs, and reach millions of new potential customers.
How Taxually handles this
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Frequently asked questions
What is the VAT % in Austria?
The standard Austrian VAT rate is 20%, with reduced VAT rates of 13% and 10% applied to certain goods and services. Since 1 July 2026, a 4.9% rate also applies to selected basic foods.
Is the Austrian VAT rate 19%?
The regions of Jungholz and Mittelberg have a VAT rate of 19%.
How can I obtain an Austrian VAT number?
To obtain an Austrian VAT number, submit the form U15 online via the online portal of the local tax authorities or contact the Austrian tax office.
What are the deadlines for filing VAT returns in Austria?
VAT returns in Austria must be filed by the 15th of the second month following the tax period, with monthly, quarterly, and annual filing options available.
