Obtaining A Vat Number In Austria: A Guide

If you are a business owner selling goods or services in Austria, you may need to register for value-added tax (VAT) and comply with Austrian tax regulations. The Austrian VAT registration process is handled by the Austrian tax authorities, specifically the Federal Ministry of Finance and the tax offices (Finanzamt). The process of VAT registration in Austria involves submitting several documents, including personal or company information, nature of business activities, and a VAT number in your country of origin if you are a non-Austrian company. Once your application is approved, you will receive a confirmation letter with your Austrian VAT number, which usually takes around 2 to 3 months.

Foreign companies with a fixed location in Austria

It is important to note that foreign companies must comply with Austrian VAT compliance rules and file regular returns. Additionally, they must indicate their VAT number on invoices for amounts exceeding EUR 10,000.

Foreign companies should also be aware of the reverse charge rules in Austria. In certain situations, the obligation to pay tax is transferred to the customer, and the reverse charge procedure may apply to companies from non-EU countries. Small business operators/entrepreneurs are exempt from VAT in their own country, but if they engage in B2B services with a transfer of tax liability, they must apply for a VAT number when issuing the invoice.

For companies that are established in a European country but do not have a VAT number in Austria, VAT refunds can be applied for electronically from their country of residence. Non-European companies, on the other hand, may need to appoint a tax representative to submit a refund application.

VAT registration thresholds for foreign businesses

Foreign businesses that are VAT/GST/Tax registered in their home state have a VAT registration threshold of nil in Austria. For EU VAT-registered companies selling goods remotely to Austrian consumers, the VAT registration threshold is €35,000 per year. Non-resident businesses selling digital products to Austrian customers need to register, collect, and pay the 20% VAT on these B2C sales.

Businesses must register for VAT once they make their first B2C sale in Austria, regardless of turnover. For B2B sales, a reverse-charge mechanism applies, where the business customer accounts for the VAT rather than the seller. If the customer is a business and has provided a valid VAT number, adding and collecting tax is unnecessary. In this case, the customer will handle VAT for the seller.

Foreign companies with a fixed location in Austria should register with the local tax office, which is usually the tax office in the city or area where the business is located. The registration process takes around four to six weeks. Once granted, the company is allocated a unique Austrian VAT number, and they can commence trading and charging Austrian VAT.

Exemptions from VAT registration

Businesses with an annual net income that does not exceed 35,000 EUR are eligible for VAT exemption in Austria. Small companies that fall under this threshold can benefit from this rule, but they may opt to register for VAT if their own tax liability is less than the input that will be charged.

Businesses that sell taxable goods to non-business customers in Austria through remote means are subject to special registration and tax rules. If the business is in another EU country, it must register for Austrian VAT if its sales to Austrian customers exceed a certain threshold. If sales do not exceed this threshold, the business can still choose to register and pay Austrian VAT.

Some businesses are exempt from registering for VAT in Austria, including juridical persons that do not function as business enterprises, such as pure holding companies. Businesses that have a turnover that falls below the mandatory registration threshold are also exempt from obtaining an Austrian VAT identification number (VAT ID).

Additionally, certain supplies and transactions are VAT-exempt in Austria. These include health services, financial services, fundraising events, donations of blood and organs, government-funded theatres, orchestras, museums, and export transactions. Real estate transactions with a tax base of 1,100 EUR or below are also exempt from VAT in Austria.

How to apply for a VAT number

To apply for a VAT number in Austria, you must first determine whether you are eligible. Foreign companies with a fixed location in Austria or those that import goods into Austria from outside the EU are required to register for a VAT identification number (VAT ID). Additionally, if your sales to Austrian customers exceed a certain threshold, you must register for Austrian VAT. This threshold was previously set at €35,000 per annum but has been replaced with an EU-wide threshold of €10,000.

Once you have confirmed your eligibility, you can proceed with the registration process. For foreign companies, the initial step is to reach out to the Austrian tax office in Graz. The subsequent registration process is conducted via mail. Alternatively, you can use VAT software to guide you through the registration process and handle the application on your behalf.

To complete the registration, you will need to submit specific documents. These typically include personal or company information, such as your full name, company name, address, contact information, and other relevant identification details. You will also need to describe the nature of your business activities, including the goods or services you provide. If you are a non-Austrian company, you will generally be required to provide proof of your VAT number in your country of origin. Additional documents may be required, depending on your specific circumstances.

It is important to note that the registration process can take around 2 to 3 months to complete. Once your application is approved, you will receive a confirmation letter with your Austrian VAT number, and you can start charging and collecting VAT on your sales within Austria.

Austrian VAT rates

The Value Added Tax (VAT) in Austria is known as Umsatzsteuer (USt) in German. Austrian VAT law is based on the 6th EU VAT Directive, but the country is free to set its standard VAT rate and levy reduced VAT rates on specific goods for economic reasons.

The standard Austrian VAT rate is 20% (19% in Jungholz and Mittelberg). This rate generally applies to all goods and services for which no exemption or reduced rate exists. The first reduced VAT rate is 13% and applies to items such as:

• Tickets to sports and cultural events
• Domestic flights
• Pet food
• Artists' services and products
• Animals, seeds and plants
• Museums, zoos, and film screenings
• Wood
• Ex-vineyard sales of wines
• Public pools
• Youth care
• Athletic events

The second reduced VAT rate is 10% and applies to most food products, books, hotel stays, rentals for residential purposes, newspapers, magazines, restaurants, passenger transport, pharmaceuticals, and the repair of certain products.

Supplies and services at 0% are standard supplies, such as exports or intra-Community supplies.

VAT in Austria is obligatory for businesses that conduct sales within the European Union and exceed the intra-Community distance sales limit of €10,000. Businesses with a turnover below the VAT registration threshold of €35,000 per year are exempt from obtaining an Austrian VAT identification number (VAT ID).

To register for VAT in Austria, taxpayers must submit a paper application to the relevant tax authorities. Austrian residents should apply to the tax office in the city or area where the business is located, while non-residents must register with the tax office in Graz-Stadt.

Frequently asked questions