The value added tax (VAT) is one of the most important taxes applied by the Austrian Government. It is regulated by the VAT Act and it is administered by the Ministry of Finance. The VAT is an indirect tax applied as it is imposed to Austrian companies and collected from the buyers of goods or services. Foreign investors opening companies in Austria are required to obtain a VAT number upon the registration of the company with the Trade Register.
Our company formation agents in Austria can assists enterprisers who want to open a company in this country.
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VAT rates in Austria
The VAT is imposed at certain rates in Austria. The standard rate of the Austrian value added tax is 20%. In 2016, several rates were reduced. The new rates are:
- – a 13% for local flights, sport event entrances, wine production, the supply of certain agricultural products;
- – a 10% rate for water supply, medicines, local transportation, newspapers and books, social services, hotel accommodation and several other services and products.
Austria also enabled a 0% VAT rate for certain products and services. You can also rely on the accounting services provided by our agents in Austria.
VAT registration in Austria
Even if VAT registration is not required, Austrian companies are advised register and obtain a VAT number because it can be deducted through the annual VAT returns. Even if there is no registration threshold, certain companies are required to apply for a VAT number. These are:
- – companies selling goods in Austria or in the EU;
- – companies storing goods for resale purposes;
- – companies involved in distance selling activities;
- – companies offering procurement services;
- – companies organizing various events;
- – restaurants.
Annual VAT returns must be filed by the end of April of the next year. Companies in Austria must also file monthly and quarterly VAT documents and pay the VAT related to those periods. Companies in the EU are also entitled to claim VAT refunds in Austria in a maximum period of 4 months after issuing an invoice.
Requirements for VAT compliance in Austria
Companies that are eligible for VAT exemption are those that have an annual turnover that does not exceed 30,000 EUR. All other types of companies are required to register for VAT purposes with the Austrian tax authorities.
Monthly VAT returns are due in Austria and a yearly return is due by the end of June each year. Quarterly return submissions are possible but only if the taxpayer has an annual turnover under 100,000 for the year of the assessment.
VAT grouping is possible in Austria if the parent company has a certain level of control over its subsidiary in Austria.
If you want to open a company in Austria and need assistance with the VAT registration procedure, please contact us. Our company registration consultants in Austria can also assist you with the company formation process.