austria-flag
Summary

Standard VAT rate: 20%
E-Invoicing: mandatory in B2G, permitted but still not mandatory in B2C and B2B
Reporting: none
Digital service tax: yes

Compliance and rates

 

VAT number format

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).

 

VAT rates

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

 

VAT payments and returns

All businesses with Austrian VAT number must submit periodic VAT reports and payments.

VAT Returns frequency

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.

Penalties in case of late filings or misdeclarations

Failure to register and late registration

  • Penalty for failure to register for VAT if done with intent can be up to EUR 5,000.
  • Penalties of 2% of the VAT due for late payment of VAT

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.

 

Invoice requirements

Full VAT invoices issued in Austria must contain the following:

  • Sender (name, address, email address, possibly UID number * , contact details)
  • Recipient (name, possibly department, address, possibly UID number * , contact details) bill number
  • Date of invoice
  • Delivery date or service period
  • Optional terms of payment (if these are not specified, is “due immediately”)
  • Payment details (either bank details with IBAN and BIC or SEPA direct debit)
  • Data on the goods / services billed (description, quantity, unit, unit price, VAT rate)
  • Total price (gross, net, sales tax)
  • Optional legal form, company headquarters, commercial register number and commercial register court (according to § 14 UGB ) *

 

SAF-T

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.

 

E-Invoicing

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.

 

Digital Service Tax – DST

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:

  • Digital advertising service: A digital advertising service is defined as an advertisement on a digital interface (e.g., banner advertisements, search engine advertisements, and comparable advertising services). For these purposes, comparable advertising services may be specified by a separate ordinance. Advertising services that fall under the provisions of the (standard) Austrian Advertising Act 2000 are not covered.
  • Service provider: There are two thresholds a service provider must satisfy to be determined to be a digital advertisement service provider within the meaning of Article 1 section 1 of the new law: A global turnover of €750 million or more, and A turnover in Austria (from online advertising services) of at least €25 million
  • User: A user is defined as an individual or legal person that has access to a digital interface with a device.
  • Digital interface: A digital interface is defined as any kind of software including websites or part of websites as well as mobile applications. The tax base for the digital services tax is generally the consideration the service provider receives for the provided services from the purchaser. The tax rate is 5%. The person liable for the digital services tax is the service provider, who must then calculate the amount of the digital services tax and remit the tax payment to the competent tax office on the fifteenth (15) day of the second month followed by the month in which the tax liability arises. The tax liability arises at the end of that month in which the taxable service are provided. The service provider also must file an annual digital services tax return within three months after the end of the service providers’ financial year.

The service provider also must file an annual digital services tax return within three months after the end of the service providers’ financial year.

Turnkey invoice compliance.

Built for online marketplaces, by people from online marketplaces