VAT Registration in Austria

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 as it is imposed on 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.

Quick Facts
We offer VAT registration services	Yes
Standard rate	20%
Lower rates	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	4 weeks
VAT for real estate transactions	– VAT exemption for property sales and some commercial rentals; – it can be applied at 10% in other cases
Exemptions available	– 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	Upon request
VAT refund	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

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.

VAT rates in Austria

The VAT is imposed at certain rates in Austria. The standard rate of the Austrian value added tax is 20%. Additionally, there is a 19% special VAT rate for goods/services sold to customers from Jungholz or Mittelberg. Austria also has reduced rates for VAT in some cases:

• 13% for local flights, sport event entrances, wine production, the supply of certain agricultural products;
• 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. 

VAT in Austria can be exempted in some situations. Some examples include: fundraising events, donations of blood and organs, government-funded theaters, orchestras, and museums. Our specialists in company formation in Austria can help you with the exact VAT rates that apply to your goods/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;
• 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.

The VAT identification number (UID)

The VAT identification number is part of the VAT registration in Austria. After registration, each company will receive a unique number for taxation and administrative purposes. Companies receive only one UID number even if they have multiple establishments or engage in various business activities. Please note that the UID number is only for juridical persons and business transactions.

Along with the UID number, businesses must specify their company details on VAT registration notices or in communications with the relevant authorities.

For invoices exceeding 10,000 euros, companies must include the UID of the recipient, especially if the service is received on behalf of his/her company.

Our team will help you with more information about the UID number when you open a company in Austria.

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.

Deductible VAT in Austria

VAT in Austria is deductible in some cases:

• buying, leasing, repairing, and fueling environmentally friendly cars for work purposes;
• accommodation expenses for business trips;
• entertainment costs related to marketing purposes for business partners (this includes restaurant expenses);
• training, conference, and exhibition/fairs costs for business purposes;
• books and mobile phone bills expenses;
• business gifts to clients and partners as part of business activities;
• taxis and travel expenses.

For the VAT refunds in Austria, businesses must receive detailed invoices that include specific information about the goods/services. This includes the names and addresses of both the buyer and seller and a clear description of the goods/services. Our accountants in Austria can help with VAT refunds.

Statistics about tax revenue in Austria

VAT in Austria is an important factor that contributes to the total tax revenue in the country. Below, our team of specialists in company registration in Austria has gathered some statistics about Austria’s total tax revenue in 2023:

• Austria collected 66.219 million euros in taxes on production and imports, which includes VAT;
• The current taxes on income, wealth, and related sources amounted to 66.675 million euros;
• The net social contributions amounted to 72.708 million euros;
• The total tax revenue in Austria for 2023 amounted to 205.692 million euros.

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.