What does this guide contain?
The guide provides you with practical VAT information for Austria:
- Your VAT registration in Austria
- Your VAT obligations TVA in Austria
- The invoicing rules in Austria
VAT REGISTRATION IN AUSTRIA
When do you have to register for VAT?
It is mandatory for your company to apply for VAT registration with the Austrian tax authorities before starting your activities. Financial penalties may apply if the application for registration is submitted late.
How long does it take to get a VAT number?
If your file is complete, it generally takes one month to obtain the VAT number.
What documents do I need to provide when I register?
If your company wishes to register for VAT in Austria, it is essential to contact the Austrian tax authorities. There is no need to contact the tax authorities in your country of establishment.
In particular, your company will need to submit the following documents:
- The VAT registration form(s) completed in the language of the country
- A copy of the articles of association
- An extract from the trade register
- A certificate of VAT liability
- Power of attorney (if using a fiscal agent)
- Proof of activity on the territory of the country concerned: a contract, an order form, etc.
The Austrian tax authorities may require some of these documents to be translated into German.
Is a fiscal representative necessary?
Non-European companies cannot register for VAT themselves in Austria. They have to do it through a VAT representative. This is a local company that will represent you to the local VAT authorities. He is responsible for the respect of all your VAT obligations, including those of which he was not aware. For this reason, he may require a deposit (e.g. a bank guarantee) from you before accepting the representation assignment.
European companies are not obliged to appoint a VAT representative. However, to facilitate their relations with the local tax authorities, they may appoint a proxyholder (agent) to carry out the tax formalities on their behalf. In this case, it is not necessary to issue a bank guarantee. The company remains solely responsible for paying its VAT debts.
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VAT OBLIGATIONS IN AUSTRIA
Is it necessary to keep VAT accounting ledgers?
Your company must keep ledgers sufficiently detailed to enable the application of VAT and its control by the Austrian tax authorities.
When do you have to file a VAT return?
Your company is required to file provisional [preliminary] VAT returns on a monthly basis provided the annual turnover of the previous calendar year exceeds € 100.000. Quarterly reporting period is applicable below the above threshold.
The VAT return must be filed electronically by the 15th day of the second month following the tax period to which it relates . In case of late VAT returns, penalties may be levied up to 10% of the tax due.
The VAT expert's eye
Member States set the duration of the taxable period at one, two or three months. However, they may set different periods provided they do not exceed one year. The VAT return must be submitted within a period to be determined by the Member States. This deadline may not be more than two months after the end of each taxable period (Art. 250 of the VAT Directive).
Do I have to submit an annual return?
Your company is required to file an annual recapitulative VAT return [Umsatzsteuererklärung].
The annual statement should be filed by April 30th of the next calendar year (or by June 30th of the next calendar year in case of electronic filing through "FinanzOnline"). An extension is available if your company is represented by an Austrian tax adviser.
The VAT expert's eye
Member States may require the taxable person to file a return containing all the data referred to in Articles 250 and 251 and concerning all transactions carried out during the previous year. This return shall include all the information necessary for any adjustments. They authorize, and may require, the return to be made by electronic means under conditions which they determine (Art. 261 of the VAT Directive).
What is the deadline for paying Austrian VAT?
The company must pay the VAT due has the same deadline as the VAT return.
If you do not pay on time, Austrian VAT authorities will charge interest for late payment [surcharges of at least 2% of the net tax payable].
The VAT expert's eye
Every taxable person who is liable for the tax must pay the net amount of VAT when filing the VAT return. Every taxable person who is liable for the tax must pay the net amount of VAT when submitting the VAT return. However, Member States may set a different deadline for the payment of this amount or collect instalments (Art. 206 of the VAT Directive).
When should the intra-EU statement be filed?
The company is obliged to file an electronic intra-Community listing [Zusammenfassende Meldung] by the end of the month following the reporting period [month or quarter] to which it relates.
The eye of the VAT expert
A recapitulative statement is drawn up for each calendar quarter within a period and according to procedures to be determined by the Member States. However, Member States may provide for recapitulative statements to be submitted on a monthly basis. Member States may allow, and may require, recapitulative statements to be submitted electronically under the conditions they determine (Art. 263 of the VAT Directive).
When should the Intrastat declaration be submitted?
INVOICING RULES IN AUSTRIA
Does the invoice have to include VAT? Reverse charge?
As a supplier of goods or services, your company is normally obliged to issue an invoice with VAT to its customer. This is the general rule. However, there are many derogatory situations which transfer this obligation to pay tax to the customer himself. These situations are known as "reverse charge" situations.
The special reverse charge rules have been introduced in Austria for foreign companies:
For supplies of goods:
The reverse charge is not applicable to major supplies of goods goods [except for supply of goods with installation and for other specific items].
For supplies of services:
The reverse charge is applicable to major domestic supplies of services made by a business not established in Austria, provided that the customer is a taxable person or a non-taxable legal bodies. The reverse charge also applies if the customer is a non-established company and is therefore applicable between two (provider and customer) non-established taxpayers.
The eye of the VAT expert
Admission to fairs, exhibitions and conferences is however not covered by the general reverse charge. Foreign providers must therefore be VAT registered and charge Austrian VAT for these transactions whatever the quality of the customer.
Foreign companies must also charge Austrian VAT for the offsetting of accommodation services since 07/2022 (amendment of § 19 para. 1 UStG) whatever the quality of the customer.
What are the mandatory mentions on an invoice?
The VAT Directive lays down the minimum information that you must include on your invoice. In some cases, countries may add additional compulsory information. Particular attention should be paid to the conversion rates when the currency used on the invoice is not that of the country in which the transaction takes place, and to the specific statements justifying the legal reason why VAT is not charged.
What VAT rate should be mentioned on an invoice?
Austria has 3 different VAT rates :
- Standard rate : 20%
- Intermediary rate : 13%
- Reduced rate: 10%
The eye of the VAT expert
The 10% reduced rate mainly applies to foodstuffs (excluding alcoholic beverages), books and e-books, newspapers, periodicals, pharmaceutical products, transport of passengers (excluding internal flights), accommodation in hotels as well as restaurant and catering services, …
The 13% reduced rate mainly applies to internal flights, admission to sporting events, cultural events, cinemas, theatres, zoos, amusement parks, etc.
VAT REFUNDS IN AUSTRIA
How can I recover VAT in Austria?
There are several methods to obtain refunds of Austrian VAT. The practical formalities for reclaiming foreign VAT will differ depending on whether or not your company is established in Europe and/or is identified for VAT in Austria:
- If your company has a VAT number in Austria, it will have to submit a refund application in the form and within the timeframe required by local regulations. A VAT credit can be carried forward to the next period. The VAT credit may be claimed as a refund by submitting the periodic VAT return and by sending a repayment claim letter to the relevant tax office.
- If your company is established in a European country and does not have a VAT number in Austria, it will have to apply for a VAT refund electronically from its country of residence, in the form and within the time limits required by Directive 2008/9.
- If your company is established outside Europe and does not have a VAT number in Austria, it may have to appoint a tax representative to submit its refund application in the form and within the time limits required by the 13th Directive.
Is Austrian VAT recoverable on all expenses?
VAT incurred on purchases, imports or intra-Community acquisitions of goods and services can be reclaimed by a foreign company provided that these expenses are for taxable activities and provided that the appropriate documentation is available.
VAT is however not recoverable or partially recoverable notably on the following expenses:
- Living expenses [e.g. entertainment expenses].
- Expenses in connection with the purchase, leasing or the operation of cars, mixed vehicles or motorcycles.
- Travel inputs.
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