Understanding Austria's Vat Rates: A Comprehensive Guide

how much is vat in austria

In Austria, there are three different VAT rates: one standard rate and two reduced rates. The standard rate is 20% and applies to most goods and services. The first reduced rate is 13% and applies to cinema tickets, swimming pool visits, and importing works of art, among other things. The second reduced rate is 10% and applies to groceries, rent, and public transport tickets.

Characteristics Values
Standard VAT rate 20% (19% in Jungholz and Mittelberg)
First reduced VAT rate 13% (cinema tickets, swimming pool visits, tickets to sport and cultural events, domestic flights, pet food, artists' services or products)
Second reduced VAT rate 10% (groceries, rent, public transport tickets)
Temporary second reduced rate 5% (introduced in response to the Coronavirus pandemic)
Companies subject to VAT All companies with an annual turnover of more than €35,000
Companies not subject to VAT Small businesses with an annual turnover of less than €35,000

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The standard VAT rate in Austria is 20%

There are also two reduced VAT rates in Austria. The first reduced VAT rate is 13%. This applies to cinema tickets, swimming pool visits, tickets to sports and cultural events, domestic flights, pet food, artists' services or products, and more. The second reduced VAT rate is 10%. This applies to groceries, rent, public transport tickets, and cow's milk.

In addition, a temporary second reduced rate of 5% was introduced in response to the Coronavirus pandemic.

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The reduced VAT rate in Austria is 13%

In Austria, there are two reduced VAT rates and one standard rate. The standard rate is 20% and applies to most goods and services. The first reduced VAT rate is 13% and applies to cinema tickets, swimming pool visits, tickets to sport and cultural events, domestic flights, pet food, artists' services or products, and more. The second reduced VAT rate is 10% and applies to groceries, rent, and public transport tickets.

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The second reduced VAT rate in Austria is 10%

In Austria, there are two reduced VAT rates and one standard rate. The standard rate is 20% and applies to most goods and services. The first reduced VAT rate is 13% and applies to cinema tickets, swimming pool visits, and importing works of art, among other things. The second reduced VAT rate is 10% and applies to groceries, rent, and public transport tickets.

The 10% reduced VAT rate in Austria is part of the country's three-tiered tax system, which also includes a standard VAT rate of 20% and an intermediate rate of 13%. This means that the amount of VAT you pay depends on the type of good or service you are purchasing. For example, you will pay 20% VAT on most drinks in Austria, but only 10% VAT on groceries.

The reduced VAT rate of 10% in Austria applies to a range of everyday items, including groceries, rent, and public transport tickets. This means that the cost of living in Austria is slightly lower than it would be if these items were taxed at the standard rate of 20%.

The 10% reduced VAT rate in Austria is also lower than the standard VAT rates in many other European countries. For example, the standard VAT rate in Germany is 19%, and the standard VAT rate in France is 20%. This makes Austria a relatively tax-friendly country for businesses and consumers.

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A temporary second reduced VAT rate of 5% was introduced in response to the Coronavirus pandemic

In Austria, there are two reduced VAT rates and one standard rate. The standard rate is 20% (19% in Jungholz, Mittelberg and some other areas). This applies to most goods and services. The first reduced VAT rate is 13% and applies to cinema tickets, swimming pool visits, tickets to sport and cultural events, domestic flights, pet food, artists' services or products, and more. The second reduced VAT rate is 10% and applies to groceries, rent, and public transport tickets.

A temporary second reduced rate of 5% was introduced in response to the Coronavirus pandemic.

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Small businesses with an annual turnover of less than €35,000 don't have to pay VAT

In Austria, the Value Added Tax (VAT) is known as Umsatzsteuer (USt). The standard VAT rate is 20% (19% in Jungholz and Mittelberg). However, small businesses with an annual turnover of less than €35,000 are exempt from paying VAT. This means they don't have to charge sales tax, but they also can't claim input tax.

The standard VAT rate applies to most goods and services, while there are also two reduced VAT rates. The first reduced rate is 13% and applies to cinema tickets, swimming pool visits, tickets to sport and cultural events, domestic flights, pet food, and artists' services or products. The second reduced rate is 10% and applies to groceries, rent, and public transport tickets.

It's worth noting that figuring out which tax rate applies in which circumstances isn't always straightforward. For example, soy and oat milk are taxed at 20%, while cow's milk is taxed at 10%. Additionally, certain goods and services may be taxed at a temporary second reduced rate of 5%, as was introduced in response to the Coronavirus pandemic.

Frequently asked questions

The standard VAT rate in Austria is 20%.

The reduced VAT rate in Austria is 13%.

The second reduced VAT rate in Austria is 10%.

Yes, the regions of Jungholz and Mittelberg have a VAT rate of 19%.

Cinema tickets, swimming pool visits, and importing works of art are taxed at the reduced VAT rate of 13%. Groceries, rent, and public transport tickets are taxed at the second reduced VAT rate of 10%.

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