Country Guide: Austria
Looking to expand your e-commerce business to Austria, then look no further, here is AVASK's guide to VAT in Austria:
VAT in Austria
Austria is a member of the European Union (EU) and draws up its tax rules according to the laws or directives issued from Brussels by the EU. The current VAT directive applies to all 27 member states of the European Union, and it governs the rules on VAT compliance, and in some part, covers the setting of VAT rates.
As an EU member state, Austria is obliged to implement the VAT directives, which provides guidance on VAT. Where there is a conflict, the European Union’s directive takes precedence. Austria is also a member of the European single market economy and uses the Euro as its currency. Locally, VAT is known as: Umsatzsteuer, or USt.
VAT registration in Austria
Both EU and non-EU businesses may trade in Austria without establishing a local presence. This is known as non-resident VAT trading. There is no VAT threshold in Austria for the registration of non-resident traders, but you will need one to record transactions and your Austrian customers will want proof that you have obtained one.
There are strict rules on the situations where VAT registration is permitted. Common scenarios that require Austrian VAT registration include:
- Importing goods into Austria;
- Organising live events, conferences, etc. in Austria;
- Holding goods in a warehouse in Austria as stock for resale;
- Buying goods within Austria that are subsequently re-sold in-country;
- Selling goods from Austria to other EU member states;
- Distance-selling to private individuals in Austria, e.g. internet retailing or trading through an e-commerce platform.
Registering for Austrian VAT can take up to one month, but this varies from seller to seller and will depend on the specifics of an individual company.
Austrian VAT compliance
There are detailed rules controlling the recording and processing of Austrian transactions for VAT purposes. This includes guidelines on:
- Austrian invoice requirements;
- When to issue an Austrian tax invoice;
- Foreign currency reporting;
- Credit notes and corrections;
- Correcting entries from prior returns;
- Which accounting records must be maintained.
Austrian VAT Rates:
|VAT Rate||% Rate|
Country profile: Austria
Austrian e-Commerce Market Facts:
|Number of e-commerce users:||7.1 million (January 2020)|
|Revenue in e-commerce market:||£5.07 billion|
|Estimated market growth:||5.5% to £6.28 billion by 2024|
Austrian thresholds and additional summary
|Distance Selling Threshold (DST)||€35,000|
|VAT number format:||ATU 12345678|
|VAT return period:
(dependant on annual turnover)
€100,000 and over
|VAT return deadline||45 days from the end of reporting period|
|Annual VAT filing deadline:||30th June of the following year|
|EC sales lists reporting||Monthly or quarterly (depending on VAT return period)|