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.
The value-added tax rates remain unchanged for 2024. The same applies to the applicable registration requirements, with companies continuing to be subject to a minimum registration threshold. The tax filing and payment principles remain in place, as described in this article.
Our company formation agents in Austria can assists enterprisers who want to open a company in this country and who need VAT registration in Austria.
|We offer VAT registration services
0%, 10%, 13%
|Who needs VAT registration in Austria
Taxable persons with an annual turnover over EUR 35,000
|Time frame for VAT registration in Austria
|VAT for real estate transactions
– VAT exemption for property sales and some commercial rentals;
– it can be applied at 10% in other cases
– export deliveries to third countries (subject to special regulations),
– insurance agent services,
– money and bank transactions,
– some commercial rental activities
|Period for filing
Monthly or quarterly basis
|VAT returns support
|In case of input taxes accrued in Austria, subject to conditions for application
|Local tax agent required
It is advisable to work with one of our agents for VAT registration in Austria.
|Who collects the VAT
The Tax Authority
|Documents for VAT registration in Austria
– registration form,
– Articles of Association,
– proof of registration with the Commercial Register,
– relevant financial information for the registration threshold,
– other data as needed
|VAT number format in Austria
9 characters preceded by country code and the letter "U"
|VAT de-registration situations in Austria
– when the taxpayer is no longer eligible,
– when the company ceases its activities,
– in other situations related to non-compliance, unlawful conduct
Table of Contents
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.
Business owners who wish to receive comprehensive solutions for VAT compliance and payment can reach out to our accountants in Austria for more information about our services. We provide complete tax assistance, for VAT and corporate income tax filing and payment, as well as solutions for payroll processing and management, along with the commonly requested bookkeeping services.
VAT registration in Austria in 2024
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;
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 in 2024
Companies that are eligible for VAT exemption are those that have an annual net income that does not exceed 35,000 EUR. All other types of companies are required to register for VAT purposes with the Austrian tax authorities in 2024.
Small companies can take advantage of this VAT registration exemption rule, when they fall under the annual net income threshold, however, there are situations when the company may opt for this tax liability. Such as case may be when the company’s own tax liability is less than the input that that will be charged. In other cases, it can also be an advantage when the company will maintain the cost neutrality of the VAT (as payments will generally be made to parties who can deduct this tax).
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.
The macroeconomic trends for Austria, as highlighted by the European Commission, predict a gradual growth and an easing of inflation. Economic growth, picked up in the fourth quarter of the year, with a +0.2% growth on a quarter-on-quarter basis. As far as the number of companies registered in the country (among which many are registered for VAT purposes), the data shows the following:
- The total number of companies in 2021 was 589 615, out of which 35,371 were incorporated that year; compared to 2020, there was a +0.3% increase in the number of newly registered enterprises;
- 46,840 companies were engaged in accommodation and food service activities, and 43,009 companies in other service activities.
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.