Austria's Vat Number System: How Does It Work?

Austria's VAT system came into effect on January 1, 1995, in accordance with the Value Added Tax Act of 1994. The Austrian VAT number is a unique, nine-character identifier, with the first character always being a 'U'. Foreign businesses that are VAT-registered in their home state and trade in Austria must register for an Austrian VAT number. This can be done by submitting the appropriate forms and documentation to the Graz-Stadt tax office if the company has no fixed establishment in Austria, or the local tax office if it does. Once registered, which usually takes four to six weeks, the business can commence trading and charging Austrian VAT, complying with Austrian VAT regulations.

What is a VAT identification number?

A VAT identification number, also known as a VAT registration number, is a unique identifier used for value-added tax purposes in many countries, including the countries of the European Union. It is a unique number, typically consisting of up to 12 characters, that identifies a taxable person (business) or non-taxable legal entity that is registered for VAT.

In the EU, a VAT identification number can be verified online at the EU's official VIES website. It confirms that the number is currently allocated and can provide the name or other identifying details of the entity to whom the identifier has been allocated. However, many national governments will not give out VAT identification numbers due to data protection laws.

The full identifier starts with an ISO 3166-1 alpha-2 (2 letters) country code and then has between 2 and 13 characters. The identifiers are composed of numeric digits in most countries, but in some countries, they may contain letters.

Each EU member country has a slightly different format for its VAT number system, featuring a variation of numbers and letters. It is important for businesses to pay close attention to these numbers and ensure they are using the correct format, as EU VAT numbers are frequently checked against the VAT Information Exchange System (VIES). Any errors could cause disruption in the form of processing delays or even financial penalties.

Foreign companies that trade with private individuals and non-business organisations in the EU may have a VATIN starting with "EU" instead of a country code. For example, Godaddy EU826010755 and Amazon (AWS) EU826009064.

How do you get a VAT number in Austria?

The VAT identification number (ATU number) is a unique identifier for companies and is needed in business relationships with entrepreneurs from other EU countries. The VAT number can be applied for at the responsible tax office in Austria.

The VAT Identification Number (UID) is an individual identification number for companies that are registered for VAT. Every company receives only one Austrian VAT Identification Number, even if it has multiple establishments or performs multiple activities.

The VAT Identification Number only applies to businesses. When a company references their VAT Identification Number, this indicates that they are receiving services as a company (and not as a consumer) and also provides information on where their company operates.

The VAT number in Austria serves as proof of sales between companies. As part of the free trade of the European Union, this number can ensure that smooth trade also always works for tax purposes between the countries of the European Union.

How to get a VAT number in Austria

To apply for a VAT number (ATU number) in Austria, you must use the formular U15 (or U15a). Fill in the form for your company and submit it to the Austrian tax office. The form for applying for a VAT number in Austria can be found online on the website of the Ministry of Finance.

The structure of the Austrian VAT number starts with the prefix AT (country code), followed by the letter U (which stands for "Umsatzsteuer", meaning "value-added tax" in German), and then eight unique digits.

When to apply for a VAT number in Austria

If you are a seller from abroad, you have to register for a VAT ID in Austria for two main reasons. Firstly, if you cross the annual Austrian delivery threshold of €35,000. Secondly, if you are storing goods in Austria.

The application for a VAT number in Austria takes several weeks.

What is the Austrian VAT format?

The Austrian VAT number format is 9 characters long, with the first character always being a 'U'.

Once a business has been granted an Austrian VAT number, which usually takes around four to six weeks, it is free to start trading and charging Austrian VAT. The business must then comply with Austrian VAT compliance rules and file regular returns.

To obtain an Austrian VAT number, the Austrian tax office requires the completion of the appropriate forms, which must be submitted with the following documentation:

• Specimen signature in original
• VAT certificate to prove the business is registered for VAT elsewhere in the EU, if appropriate
• Articles of Association
• An extract from the company's national trade register

Non-resident businesses established in the EU may register directly. However, non-EU foreign businesses must appoint a fiscal representative to register for VAT on their behalf.

What is the Austrian VAT rate?

Austria has three different VAT rates: one standard rate and two reduced rates. The standard rate is 20% and applies to most goods and services. The two reduced rates are 13% and 10%. The 13% reduced rate applies to goods and services such as cinema tickets, swimming pool visits, and importing works of art. The 10% reduced rate applies to groceries, rent, and public transport tickets.

The VAT rates in Austria are set by the Austrian government, while the VAT compliance rules are set by the EU. Businesses that are VAT-registered in Austria must use these rates when supplying goods and services and are held liable for any unbilled VAT.

To register for VAT in Austria, foreign businesses must submit the appropriate forms and documentation to the Austrian tax office. Once registration is granted, the company is allocated a unique Austrian VAT number, which always starts with a 'U' and is nine characters long.

What transactions are subject to Austrian VAT?

In Austria, companies and individuals carrying out an active business on a permanent basis are qualified as entrepreneurs for VAT purposes. As entrepreneurs, they must charge VAT on the supply of goods or services provided to their customers. The standard VAT rate in Austria is 20%.

A limited range of goods and services is taxed at reduced rates of 10% (e.g. books, food, restaurants, passenger transportation, medicine, and hotel accommodation) or 13% (e.g. animals, seeds and plants, cultural services, museums, zoos, film screenings, wood, ex-vineyard sales of wines, domestic air travel, public pools, youth care, and athletic events).

Certain transactions are exempt from Austrian VAT, such as export transactions and cross-border passenger transport by air or sea. Additionally, a reduced VAT rate of 19% applies in two areas: Jungholz and Mittelberg.

For most goods, the tax point (time of supply) is the time of delivery or passage of title, while for services, it is the completion of the service.

When it comes to cross-border transactions, the rules vary depending on whether the transaction is within or outside the EU, and whether the counterpart is a business or a private individual.

In the case of cross-border supplies and services between businesses within the EU, the place of receipt principle applies, meaning the delivery is tax-exempt in Austria, and the recipient is responsible for paying VAT in their own country. Both companies' VAT numbers must be stated on the invoice, along with a note about the tax exemption.

For cross-border supplies of goods to non-entrepreneurs within the EU, the destination principle applies. The sale is generally taxable in the country where the item is shipped, with an exemption limit of €10,000. Above this amount, the supplier must either register for the EU One Stop Shop (EU-OSS) or pay VAT in the country of destination.

For cross-border services provided to private customers within the EU, the general clause states that the place of business principle applies, meaning Austrian VAT should be charged and paid to the Austrian tax office. However, there are exceptions where the place of performance, and thus the tax liability, is determined by the place of activity principle, such as cultural, artistic, scientific, educational, or entertainment services provided outside of Austria.

When it comes to cross-border transactions outside the EU, a distinction must be made between supplies and services. For supplies to private customers, the same rules apply as within the EU, with some variations for specific types of rights and grants. For services provided to foreign companies, VAT must be invoiced by the Austrian company, but the obligation to pay VAT is passed on to the foreign business through reverse charging. In this case, Austrian VAT is not charged, and the invoice should state the VAT numbers of both parties and include a note about the non-taxability in Austria.

Overall, the VAT treatment of transactions in Austria depends on various factors, including the nature of the goods or services, the location of the transaction, and the status of the counterpart as a business or private individual.

Frequently asked questions