Claiming Back Your Taxes In Austria: A Guide

If you've worked in Austria over the last five years, you may be eligible for a tax refund. This is a simple procedure, but it can take 3-6 months to process. You can claim tax back on work-related expenses, such as professional development materials, work clothing, and office furniture. If you're a low-income earner, you may also be able to claim 'negative tax' or refunds on your social security contributions. If you're self-employed, you can offset several business-related expenses from your income tax. It's important to keep all bills and receipts for at least seven years in case of a tax audit.

Claiming tax back as a non-EU resident

If you are a non-EU resident who has worked in Austria in the last five years, you can file for an income tax return. This applies to cross-border workers who are subject to limited taxation in Austria. In this case, income tax is charged only in relation to domestic income (i.e. income earned in Austria).

To claim your tax refund, you will need to submit a Tax Declaration form to the Austrian Tax Office. This will require you to provide income and tax information to the tax authorities. You can do this by registering with a tax company, such as RT Tax, or by submitting the form directly to the Austrian Tax Office. The Tax Declaration form can be found on the FinanzOnline website. You will need to provide the following documents:

• A form from the State Social Insurance Fund Board, presenting your income received in your home country.
• If you have a spouse, you will need to provide the State social insurance form from the State Social Insurance Fund Board or form E9 from the State Tax Inspection for your spouse. Please note that form E9 can only be issued to EU citizens.
• Registration and deregistration documents of residence in Austria, if you have them.
• Rent bills, if they were not compensated by your employer.

Additionally, you can claim deductions for work-related expenses, such as work clothing, professional development materials, and your smartphone bill. Keep in mind that the final refund amount is determined by the local Tax Authorities, and only overpaid taxes will be refunded. The average refund is €560, but this amount can vary depending on your total income, the amount of tax paid, and the period of work abroad. The process usually takes 3-6 months from the date the Tax Declaration is sent.

Non-EU residents can also request a refund of the value-added tax (VAT) for goods purchased in Austria. To be eligible, the invoiced amount must exceed €75, and you must show the items to customs officials and obtain a stamp before leaving the European Union. This stamp can be obtained from Austrian customs officials at the airport or border crossing when leaving Austria for Switzerland or Liechtenstein. For other neighbouring countries, the customs stamp must be obtained from the customs authorities of the last EU country visited before leaving the EU.

Tax deductions for employees

If you are employed in Austria, you are likely eligible to claim a tax refund. You can declare work-related expenses and get a refund from the tax office. The average refund is €560, but if you had extra tax-deductible expenses, you might get back more.

• Work-related expenses: This includes work clothing, professional development materials, your smartphone bill, and job-search costs such as further training fees.
• Transportation costs: You can claim a deduction for commuting expenses between your residence and workplace. The deductible amount depends on the distance and the possibility of using public transport.
• Cashier's allowance: You can claim the sum of the difference in a cash register that a cashier must reimburse to their employer.
• Membership fees to certain organizations: For example, the Chamber of Labour or workers' council.
• Compulsory social and pension insurance contributions: Both employees and employers have to pay social insurance contributions, and these are tax-deductible.
• Church tax: This is deductible up to EUR 600.
• Charitable contributions: Donations to certain institutions are deductible up to 10% of the current year's taxable income.
• Austrian tax advisor fees: These fees are fully deductible.
• Relocation expenses: If your employer grants you compensation for relocation expenses when you are assigned to another location, these payments are exempt from tax.
• Family bonus: The family bonus plus is a tax credit that reduces the amount of tax paid. You can claim an annual tax credit of EUR 2,000 per child for children up to 18 years old who live in Austria and are entitled to family allowance.
• Business losses or rental losses: These can be offset with other categories of income.

To claim your tax refund in Austria, you will need to gather the necessary documents, including income information, tax declarations, and proof of any tax-deductible expenses. You can then submit your documents to the Austria Tax Office, either on your own or through a tax refund service. The process usually takes 3-6 months.

Tax exemptions for the self-employed

If you are self-employed in Austria, you need to be aware of the country's tax system, which can be quite complex. Here is a guide to help you navigate tax exemptions as a self-employed individual in Austria.

Registration and Tax Identification

To begin, it is important to understand the different categories of self-employment in Austria. The two main categories are ""Gewerbe" (Trade) and "Neue Selbständigkeit" (New Self-Employment). If your work falls under Gewerbe, you need to register with the "Wirtschaftskammer Österreich" (WKO), the Austrian Chamber of Commerce. However, if you are a new self-employed individual, you are not considered a member of the WKO, and therefore, no membership cost applies. Instead, you need to register with the Tax Office ("Finanzamt") and file an annual income tax return. To obtain a tax number, you can submit a request using FinanzOnline, the official website of the Austrian Tax Office.

Income Tax and Tax Returns

In Austria, self-employed individuals must declare their earnings and pay income tax based on progressive tax brackets. If your self-employment income exceeds €11,693 per year, filing a tax return is mandatory. Additionally, if you earn both as an employee and a freelancer, with combined earnings above €12,756 per year, and your freelance income is more than €730, you are required to file a tax return. It's important to note that even if your total earnings are below the tax threshold, you may still need to file a tax return depending on your work status.

Social Security and Insurance

Self-employed individuals in Austria are required to contribute to social security and insurance. This includes contributions to Austria's Social Insurance for the Self-Employed (SVS), which covers health, pension, and accident insurance. The cost of these contributions is proportional to the enterprise's gross income. Additionally, self-employed individuals are not members of the "Arbeiterkammer" (Chamber of Labour) and are not entitled to unemployment benefits unless they voluntarily register for unemployment insurance.

Value-Added Tax (VAT)

If your revenue as a self-employed individual exceeds €35,000 per year, you must register for VAT and charge 20% VAT on your invoices. However, small businesses are exempt from VAT registration if their annual gross revenue is less than €35,000. Certain professions, such as writers, artists, journalists, and scientists, may qualify for reduced VAT rates or exemptions.

Work-Related Expenses and Deductions

As a self-employed individual, you may be able to claim deductions for work-related expenses. Keep track of your expenses, such as transportation costs, work clothing, professional development materials, and smartphone bills, as these may be considered tax-deductible. Additionally, if you incurred job-search expenses, such as fees for further training, these are also considered deductible work-related expenses. Remember to keep all relevant receipts and bills for at least seven years in case of a tax audit.

Tax credits and deductions

If you are employed in Austria, you are likely eligible to claim a tax refund. You can claim a tax refund for as many as the last five years. The average refund is €560, but this varies depending on individual circumstances. The time frame for receiving a refund is usually between three to six months.

If you are self-employed, have multiple income sources, or want to claim exemptions, tax credits, or deductions, it is recommended that you seek professional tax advice. You can find financial experts in Austria through a directory or search for an accountant on the Austrian Chamber of Tax Advisors and Public Accountants.

As an employee, you may have a number of work-related expenses that are considered tax-deductible in Austria. For example, you can claim for work clothes, professional development materials, and your smartphone bill. You can also claim for job-seeking expenses in the same year, such as fees for further training. Transportation costs, car costs, and a cashier's allowance are also tax-deductible.

If you are a low-income earner, you may be eligible to claim 'negative tax' or refunds on your social security contributions. If you are self-employed, you can offset several business-related expenses from your income tax.

Double taxation agreements

If you are employed in Austria, you are likely eligible to claim a tax refund. This is because you may have paid more income tax than you needed to. Work-related expenses, such as work clothing, professional development materials, and smartphone bills, are tax-deductible in Austria.

Austria has entered into double taxation agreements with several countries. Double taxation agreements, or treaties, are designed to prevent double taxation on cross-border income. These agreements ensure that income that is earned in one country and paid in another is only taxed in one of the two countries. This is done to promote international trade and investment by reducing the burden of taxation on individuals and businesses with cross-border operations.

The Austrian Tax Treaty Network includes a list of all tax treaties entered into by Austria, including links to the treaty texts. The network includes double taxation conventions regarding income and capital. By entering into these agreements, Austria ensures tax fairness and strengthens its position as a location for international business.

If you are seeking to claim a tax refund in Austria, it is important to be aware of the double taxation agreements that are in place between Austria and your home country. These agreements may impact the amount of tax you are eligible to claim back. To find out more about the specific double taxation agreements that may apply to you, you can refer to the Austrian Tax Treaty Network, which provides detailed information on the tax treaties that Austria has entered into.

Frequently asked questions