Austria joined the newly formed European Union in 1995 and shortly after also became a member of the Eurozone, taking on the currency of the Euro.
Austrian VAT rates
The standard rate of VAT in Austria is 20%, and reduced rates of 10% and 12% are available.
Austrian VAT registration
The VAT registration limit for established businesses is €30,000, although it is zero for non-established businesses.
Distance sales have a limit of €35,000 for VAT registration.
The format for an Austrian VAT identification number is: AT 12345678. Every company must hold a number like this in order for accurate taxation.
VAT returns are dependent on turnover, and are usually monthly or quarterly. Annual returns are also required.
Are there any Intrastat thresholds in Austria?
Yes. There is a limit of €550,000 for both dispatches and arrivals.
Austrian VAT recovery
- Is VAT recovery permitted for non-established non-EU businesses?
Yes, Austria allows VAT recovery for all non-EU countries.
- Are there any non-VAT recoverable expenses in Austria?
Yes, recovery of input tax is restricted on certain items, i.e. hotel accommodation and business entertainment.
Reverse charge can be used on most services in Austria, although it doesn’t apply to the entrance fees conventions and seminars organised in Austria by non-Austrian companies.
Requirements and regulations in Austria
Any company established in a non-EU member country must appoint a tax representative to register for VAT in Austria.
Use and enjoyment rules apply in Austria although vary – please contact us for further information.
A local address in Austria required.
The period of VAT recovery by Austrian tax authorities has a timescale of 5-7 years in order to prevent fraud.
Similarly, there is a period of 5 years for VAT deductions and refunds
Please contact us for further information about paying taxes in Austria, and a member of our team will be happy to help you.