Key takeaways
- Austria VAT rates: The standard VAT rate is 20%, with reduced rates of 13% and 10%, plus a 0% rate for international transport and hotel accommodation.
- Registration threshold: Resident businesses must register once turnover exceeds €35,000, while non-EU companies must appoint a fiscal representative.
- Filing & penalties: VAT returns are filed monthly or quarterly, and late filings or payments can result in fines of up to 10% of VAT due and 2% late-payment penalties.
Are you thinking about selling in Austria? If so, it's crucial to have a clear understanding of the Austria VAT (Value Added Tax) system. This comprehensive guide will walk you through the Austrian VAT rates, registration requirements, filing obligations, and other key information to ensure you’re well-prepared for doing business in Austria.
What is the Austrian VAT Rate?
In Austria, VAT is referred to as ‘Umsatzsteuer’ or simply ‘UST’. The Austrian VAT system encompasses various tax rates for different types of goods and services. Here's an overview of the VAT rates in Austria:
Registering for VAT in Austria
The VAT registration threshold for resident businesses in Austria is €35,000 (nil for non-residents). That means any business exceeding this threshold must register for VAT.
As of July 1, 2021, the EU adopted a unified threshold for distance selling across member states, set at €10,000. Therefore, if your company's annual turnover from cross-border trade with an EU country exceeds €10,000, you must register for VAT in Austria. Registration is also necessary if you store products in Austria or participate in programs like Amazon's Fulfilled-by-Amazon (FBA) which includes Austria.
To obtain an Austrian VAT number, you must complete and submit form U15 to the Austrian tax authorities, including all the information requested. The form must be completed in German. You should receive your VAT number within four weeks.
Fiscal representation in Austria
It's important to note that non-EU companies selling in Austria are required to appoint a fiscal representative, who will share responsibility with the company for any Austrian VAT obligations.
Austria VAT return filing and penalties
Businesses registered for VAT in Australia must file their returns online. VAT returns should typically be filed monthly, although businesses can file quarterly returns if their annual turnover does not exceed €100,000. All taxpayers must also file an annual return.
The submission and payment deadline is the 15th of the second month following the end of the reporting period. The deadline for annual VAT returns is the 30th of June of the following year.
Failure to submit a VAT return could result in a fine of 10% of the VAT due, while the fine for late payment is 2% of any VAT due.
Austrian Intrastat declarations
Resident and non-resident businesses trading in Austria are required to submit Intrastat declarations. The annual threshold for filing an Intrastat return is €750,000 for both arrivals and dispatches. Detailed Intrastat reports must be submitted once the arrivals and/or dispatches threshold reaches €12 million. Intrastat declarations should be submitted by the 10th of the month following the reporting month via Statistik Austria.
Reverse charge in Austria
Austria, like many EU countries, applies the reverse charge mechanism in certain situations. This mechanism shifts the responsibility for reporting and paying VAT from the supplier to the recipient of goods or services. It’s typically used for EU cross-border supplies and specific industries.
Frequently asked questions
What is the VAT rate in Austria?
Austria’s standard VAT rate is 20%, with reduced rates of 13% (for cultural events, foodstuffs, and agricultural supplies) and 10% (for catering, books, newspapers, and e-books). A 0% rate applies to intra-EU and international transport.
When do I need to register for VAT in Austria?
Resident businesses must register once their annual turnover exceeds €35,000, while non-resident businesses must register immediately. The EU-wide distance selling threshold of €10,000 also applies.
How do I register for VAT in Austria?
To register, submit Form U15 (in German) to the Austrian tax authorities. Once processed, you’ll receive your Austrian VAT number within about four weeks.
Do foreign businesses need a fiscal representative in Austria?
Yes. Non-EU companies must appoint a fiscal representative who shares joint responsibility for VAT compliance and payment.
How often must VAT returns be filed in Austria?
VAT returns are usually filed monthly, though businesses with annual turnover under €100,000 may file quarterly. An annual VAT return is also required. Returns and payments are due by the 15th of the second month following the reporting period.
Are Intrastat declarations required in Austria?
Yes. Intrastat declarations must be submitted if annual EU trade exceeds €750,000 for arrivals or dispatches. They are due by the 10th of the following month, with detailed reports required above €12 million.
