Calculating Import Sales Tax For Austria: A Step-By-Step Guide

Import sales tax in Austria is calculated based on the value of the goods and shipping costs. This is known as the CIF method. The import duty rates for Austria vary for each category of goods, and the taxable value is usually based on the value of the goods. In addition to import duties, there may be other costs such as service fees for customs declaration and duties at the customs service, which can significantly increase the total cost. It is important to be aware of the import regulations and any restrictions or prohibitions on certain goods, such as tobacco products, when importing into Austria.

Calculating import sales tax for goods valued below 22 euros

When calculating import sales tax for goods valued below 22 euros, it's important to understand the specific rules and regulations in Austria. Here are the key points to consider:

• Until June 30, 2021, goods imported into Austria with a value of up to 22 euros were exempt from import VAT. This meant that no import VAT was payable for consignments valued below this threshold. However, this exemption ended on July 1, 2021, and now import VAT is applied to all imported goods, regardless of their value.
• The import VAT is calculated based on the value of the goods, which includes the purchase price, packaging costs, postage, insurance, and similar costs. It's important to note that foreign value-added tax is usually excluded from this calculation.
• Austria's customs duty scheme, which is based on the EU customs duty scheme, defines the tariff rates and duties based on the nature of the goods. Certain goods, such as tobacco, alcoholic beverages, and petroleum, may be subject to additional excise taxes.
• Online shopping has become increasingly popular in Austria, and consumers often purchase goods directly from international sellers. It is essential to be aware of the applicable customs duties, import VAT, and excise taxes for these types of transactions.
• To calculate the import duty rates for your shipment, you can use an import duty calculator or multiply the taxable value of your shipment by the applicable tax and duty percentage for Austria. The taxable value is typically based on the value of the goods but can include other amounts depending on the country's valuation method.
• When importing goods into Austria, it's important to consider the additional costs, such as service fees for customs declaration and duties advancement charged by postal or delivery services. These costs can significantly increase the total price of the goods.
• The Austrian government imposes specific restrictions and prohibitions on certain goods. For example, there is a general import prohibition for medicinal products and tobacco products due to the Austrian Tobacco Monopoly Act and the Tobacco Tax Act.

Calculating import sales tax for goods valued between 22 and 150 euros

When calculating import sales tax for goods valued between 22 and 150 euros, it's important to understand the applicable taxes and duties, as well as the specific rules and regulations in Austria. Here's a step-by-step guide to help you navigate the process:

• Understand the Taxable Value: The taxable value of the goods is crucial in calculating import sales tax. This value is typically based on the purchase price of the goods, excluding transport, insurance, or similar costs. It's important to note that the taxable value may vary depending on the valuation method used by the country.
• Identify Applicable Taxes and Duties: In Austria, import sales tax typically involves calculating import duty and value-added tax (VAT). The import duty is a tax imposed by the government on goods from other countries, and it varies depending on the category of goods. Additionally, VAT, also known as import VAT, may be applicable and is calculated based on the taxable value of the goods.
• Calculate Import Duty: To calculate the import duty for goods valued between 22 and 150 euros, you'll need to determine the applicable duty rate for the specific category of goods you are importing. The Austrian customs duty scheme, which is based on the EU customs duty scheme, defines the customs duty tariffs based on the nature of the goods. You can refer to the Combined Nomenclature (CN) document, updated and published annually by the European Commission, to classify your goods correctly. Once you have identified the applicable duty rate, multiply it by the taxable value of your goods to calculate the import duty amount.
• Calculate Value-Added Tax (VAT): Austria has specific VAT rules for imports. Until June 30, 2021, goods valued at up to 22 euros were VAT-exempt. However, starting July 1, 2021, import VAT must be paid for all imported goods, regardless of their value. Additionally, there is an exemption from import VAT for consignments up to 150 euros declared via the Import One Stop Shop (IOSS). Calculate the VAT amount by multiplying the applicable VAT rate by the taxable value of the goods.
• Consider Additional Costs: When importing goods, there may be additional costs beyond just the import duty and VAT. These can include service fees from postal or delivery services for customs declaration, excise taxes on certain products (such as petroleum, tobacco, or alcoholic beverages), and charges levied by import customs brokers for filing import customs clearance documents. These additional costs can significantly impact the overall price of the goods.
• Use Online Calculators: To simplify the calculation process, you can utilise online import duty and tax calculators specifically designed for Austria. These calculators can provide estimates by taking into account the value of your shipment and the type of goods being imported.

Calculating import sales tax for goods valued above 150 euros

When importing goods to Austria, it's important to understand the applicable taxes and duties, especially for goods valued above 150 euros. Here's a comprehensive guide to calculating import sales tax in such cases:

Understanding the Austrian Tax System for Imports

Austria's tax system for imports can be complex, and it's essential to consider various factors, including the nature and value of the goods, shipping costs, and applicable tax rates. The Austrian customs duty scheme is based on the EU customs duty scheme, which defines tariffs depending on the type of goods.

Determining the Taxable Value

The taxable value of your shipment is crucial for calculating import sales tax. This value is typically based on the purchase price of the goods, excluding transport, insurance, or similar costs. However, it's important to note that the valuation method can vary by country. In Austria, the taxable value may include the cost of the goods, shipping costs, and other amounts.

Calculating Import Duty and Taxes

Import duties and taxes in Austria are calculated using the CIF (Cost, Insurance, and Freight) method, which takes into account the value of the imported goods and shipping costs. The import duty rate varies for each category of goods and can range from 7.20 to 43.20 euros, depending on the merchandise value and product.

Excise Duties and Special Taxes

Certain products, such as petroleum, tobacco, and alcoholic beverages, are subject to excise duties. These duties are imposed in addition to the standard import duty and are calculated as a percentage of the price or volume of the product. For example, tobacco products are taxed at rates ranging from 13% to 47% of their price.

Customs Declaration and Documentation

To facilitate the import process and ensure compliance, a customs declaration (form CN23) is required. This form should include information about the merchandise value and content. It is typically provided by the sender. Incomplete information may result in delays, and the recipient in Austria will be notified to provide additional details if necessary.

Online Calculators and Resources

To simplify the calculation of import sales tax, you can utilise online tools such as the Import Duty Calculator offered by Easyship. This calculator allows you to estimate tax and duty amounts based on shipment value and product type. Additionally, the Central Information Office provides tariff rates for goods and special duties applicable in Austria, which can be queried through the EU tariff rate information database, TARIC.

In summary, calculating import sales tax for goods valued above 150 euros in Austria involves understanding the taxable value, applicable duty rates, excise duties, and providing accurate customs declarations. By following the outlined steps and utilising available resources, you can effectively navigate the import process and ensure compliance with Austrian tax regulations.

Calculating import sales tax for goods from outside the EU

When importing goods from outside the EU to Austria, several costs and regulations must be considered. Firstly, it is important to understand the difference between import duty and import VAT. Import duty is a tax imposed by the Austrian government on goods from other countries, designed to make foreign products less desirable and encourage support for the domestic market. Import VAT, on the other hand, is a tax on the consumption of goods and services within Austria.

To calculate the import duty for your shipment, you need to multiply the taxable value of your shipment by the tax and duty percentage for Austria. The taxable value is usually based on the value of the goods, but it can also include other amounts, depending on the valuation method used by the country. It is worth noting that import duty percentages vary for each category of goods. For example, the EU has an import duty of around 16% on some types of clothing from the US. Additionally, the average EU import duty is around 2%, and approximately 70% of goods can be imported into the EU duty-free.

Regarding import VAT, it is essential to understand the VAT exemption status of the goods in the country of purchase. If the goods are VAT-exempt, and you as the buyer are the beneficiary of this exemption, this amount will not be included in the calculation of the import charges. However, if the goods are not VAT-exempt, you may have to pay double tax: the foreign value-added tax and the Austrian import VAT.

Furthermore, when importing goods from outside the EU, additional costs can arise from the service fees of postal or delivery services for the customs declaration and the advancement of duties. These costs can significantly increase the overall price of the product. It is also important to note that certain goods, such as tobacco products, are subject to a general ban on trade under the Austrian Tobacco Monopoly Act. Therefore, it is crucial to be aware of any import prohibitions and restrictions before importing goods into Austria.

Calculating import sales tax for goods from developing countries

When calculating import sales tax for goods from developing countries to Austria, it's important to understand the specific regulations and agreements between the EU and developing nations. Here are the key considerations:

EU Regulations and Customs

Austria, as an EU member state, follows the European Union's import regulations and customs system. The EU operates as a customs union, maintaining a common external tariff for trade with non-EU countries. The EU's integrated tariff, known as TARIC, forms the basis for Austrian customs tariffs. TARIC provides information on tariff rates and special duties applicable to goods imported into Austria.

Preferential Import Duties for Developing Countries

The EU has established preferential import duties for developing countries through the Generalized System of Preferences (GSP). The GSP outlines the conditions under which goods from developing countries can benefit from reduced or eliminated tariffs when imported into the EU, including Austria. To take advantage of these preferential duties, a Certificate of Country of Origin must be submitted.

Calculation of Import Sales Tax

Austria calculates import duties and taxes using the CIF (Cost, Insurance, and Freight) method. This means that the import duty and taxes are based on the value of the imported goods, including shipping costs. The taxable value is usually based on the value of the goods, but it can also include other amounts, depending on the valuation method of the country of origin.

Incidental Import Costs

When importing goods from developing countries, it's important to consider incidental import costs. These can include service fees charged by postal or delivery services for customs declarations and the advancement of duties. These additional costs can significantly impact the overall price of the goods.

VAT and Excise Taxes

In addition to import duties, goods imported into Austria may be subject to value-added tax (VAT) and excise taxes. However, if the goods are VAT-exempt in the country of origin and the buyer is eligible for that exemption, the VAT amount may not be included in the calculation of import charges. Excise duties may apply to specific goods, such as tobacco products, which are subject to the Austrian Tobacco Tax Act.

Frequently asked questions