Standard VAT rate: 20%
E-Invoicing: mandatory in B2G, permitted but still not mandatory in B2C and B2B
Digital service tax: yes
All EU member states have a fixed format for their VAT numbers. In Austria it includes 8 digits and the prefixes AT and U (i.e. ATU12345678).
The standard VAT rate in Austria is 20%, with reduced rates of 13% and 10% on certain goods and services. A number of services are exempt from Austrian VAT, such as transport and some hospitality services.
20% (Standard) – Applies to all taxable supplies, with certain exceptions
13% (Reduced) – Domestic flights, tickets for cultural, sports events, and amusement parks, some agricultural supplies
10% (Reduced) – Some foodstuffs, pharmaceutical products, transport (excl. domestic flights), international and intra-community road and rail transport, newspapers and periodicals, books (incl. e-books), social services, TV services, some agricultural supplies
0% (Zero) – Intra-community and international transport
All businesses with Austrian VAT number must submit periodic VAT reports and payments.
Quarterly – if annual sales in the preceding calendar year was less than EUR 22,000.
Monthly – if annual sales in the preceding calendar year was higher than EUR 22,000.
Failure to register and late registration
Late submission of VAT returns can trigger a penalty of up to 10% of the VAT due.
Periodic VAT returns which are incomplete and/or contain incorrect information can be corrected during the relevant fiscal year. In case the amended periodic VAT return or the annual VAT return results in additional VAT being due, the Austrian tax authorities generally impose a penalty for late payment of VAT.
If accounts are not kept in accordance with VAT requirements, VAT may be assessed up to EUR 5,000 by the tax authorities.
Full VAT invoices issued in Austria must contain the following:
Austria introduced the Standard Audit File for Tax (SAF-T) on 31st January 2009. for all taxpayers.
SAF-T is an electronic schema developed for the efficient exchange of information between the tax authorities and businesses. It was created by the Organization for Economic Cooperation and Development in 2005 as a standard to be used globally to ensure consistency from country-to-country to facilitate exchange of data between tax authorities. The file requirements are expressed using XML, although the EU does not specify the exact file format.
All suppliers billing the Government aree obligated to submit their invoices electronically.
For B2B and B2C, tax regulations do not recognize an obligation for the service provider to issue an electronic invoice, however there is a possibility of issuing such type of an invoice.
The Austrian digital services tax will be imposed at a rate of 5% on the turnover from advertising services rendered by service providers in Austria. According to Article 1, section 1 of the law, a digital advertising service will be deemed to be rendered in Austria if the digital advertisement is received on a device with an Austrian IP-address and if the advertisement (also) addresses Austrian users.
Other terms in the legislation are defined as follows:
The service provider also must file an annual digital services tax return within three months after the end of the service providers’ financial year.