VAT
Last reviewed 26 Sep 2023
Tax rates
Standard rate: 20%
reduced rate 10%
e.g. for certain restaurant services, lodging services and related services, books, electronic publication of books, food, letting for residential purposes, newspapers, sheet music and cartographic products, certain repair services,
reduced rate 13%
e.g. for services regarding cultural and leisure activities (theater, cinema), art, living animals and plants, domestic flight.
Supply of goods
Supply of goods and private use (self-supply) are taxable, as far as there are no exceptions
Place of supply of goods
In principle, wherever the object is situated at the time the power to dispose of the goods is acquired (static supply)
in the case of transport or dispatch by purchaser or supplier, where transport or dispatch begins (moving supply)
Import from third countries: if supplier is liable for import VAT, in importing country (Incoterm DDP)
Delivery by water, air or rail inside the EU: point of departure
Special provisions for chain and triangular transactions
Supply of services
Supply of services and private use / supply of services without consideration (self-supply) are taxable, as far as there are no exceptions
Place of supply of services
A differentiation is made between services rendered
- to taxable persons (“Business to Business”, “B2B”) or
- to non-taxable persons (“Business to Customer”, “B2C”).
For purposes of determining the place of the supply of services,
- taxable persons (within the EU holding a VAT registration number) and
- non-taxable legal entities holding a VAT registration number will be considered as “taxable persons”
Basic rule
| B2B |
B2C |
| Place of recipient (The place where the recipient of services has established his business) |
Place of supplier (The place where the supplier of services has established his business) |
Special cases
|
B2B |
B2C |
| Supplies of services by intermediaries |
Place of recipient (basic rule) |
Place of the underlying transaction |
| Property services |
Place of property |
Place of property |
| Cultural, artistic, scienti- fic, educational, sports, entertainment or similar services, like services in connection with fairs and exhibitions including services of the respective organizer; not applicable for admission and ser- vices relating thereto |
Place of recipient (basic rule) |
Where the services are physically carried out, except for online events: place of recipient |
| Admission and other related services for events like fairs and exhibitions |
Place of the event (no Reverse Charge System for admission etc.) |
Where the services are physically carried out |
| Passenger transport |
Distances covered |
Distances covered |
| Transportation of goods (without intra-community goods transportation) |
Place of recipient (basic rule) |
Distances covered |
| Intra-community goods transportation |
Place of recipient (basic rule) |
Place of departure |
| Ancillary transport services |
Place of recipient (basic rule) |
Where the services are physically carried out |
| Appraisal and processing of movable tangible objects |
Place of recipient (basic rule) |
Where the services are physically carried out |
| Restaurant and catering services |
Where the services are physically carried out |
Where the services are physically carried out |
| Restaurant and catering services in connection with intra-community passenger transport |
Place of departure |
Place of departure |
| Renting of means of transport for up to 30 days |
Where the means of transport is actually put at the disposal of the customer |
Where the means of transport is actually put at the disposal of the customer |
| Renting of means of transport for over 30 days |
Place of recipient (basic rule) |
Place of recipient
Special regulations for renting pleasure boats
|
| “Listed services” to third country customers |
|
Place of supplier |
| “Listed services” to customer in the EU |
|
Place of supplier (basic rule) |
| Electronically supplied services, such as telecom, radio and TV services |
Place of recipient (basic rule) |
Place of recipient
as of January 1, 2019: place of supplier in case the total revenue within the EU does not exceed the amount of EUR 10,000
|
Mini-One-Stop-Shop (MOSS) / One-Stop-Shop (OSS)
As of July 1, 2021 sales can be declared in one member state of the EU via the One-Stop-Shop (OSS) and VAT can be paid in a centralized way:
- B2C services
- Supplies to consumers: turnover threshold is eliminated (exception for micro-businesses up to a total of EUR 10.000 in sales).
- Import: Tax exemption for imports from goods
Import One-Stop-Shop (IOSS) is applicable for imports to consumers for goods with value < EUR 150
- Platforms: certain platforms are treated as if they delivered the goods by themselves (notional delivery); platform may become a tax debtor
Reverse charge (reversal of tax liability)
Generally for all transnational supplies of services and work supplies; exceptions: entry tickets, toll and rentals
Requirements
Supplier is a foreigner (no residence, no place of business or permanent establishment in Austria involved in providing the service).
Customer is an entrepreneur (even with non-taxable activities) or tax-exempt legal entity holding a VAT identification number, or a legal entity under public law
Consequences
Invoice without VAT, indication that tax liability is transferred to the customer, both parties’ VAT registration numbers
Customer owes the VAT Supplier is liable for VAT
Application also
for Austrian construction services, among others and areas susceptible to fraud (e.g. mobile phones, video game consoles, laptops) if the amount is at least EUR 5,000
Tax reliefs
Exemption (Input VAT deductible even though no VAT chargeable on supply of goods and services)
- Exports
- Intra-Community supplies
- Sales revenues for sea and air transport
- Processing under contract on goods for export
- Cross-border transport of goods (on imports, if the costs are included in the taxable amount of the import, or on exports)
- Cross-border sea, air and railroad transport of passengers
- Mediation of above services
- Renting to diplomats
Zero rates (“non-genuine” tax exemption) (Input VAT is not deductible)
- Services of banks, insurance companies and pension funds
- Property sales (an option for tax liability is possible)
- Leasing of immovable properties that are neither used for residential purposes, parking lots nor short time rent (option for tax liability is possible under certain circumstances)
- Sales of doctors, dentists, midwives etc.
- Sales of small enterprises (gross sales per calendar year not exceeding EUR 55,000; an option for tax liability is possible)
For VAT and import VAT invoiced to the business for the supply of goods and services the companies are generally entitled to the deduction of input VAT.
Generally no deduction of input VAT with respect to:
- non-deductible expenses
- goods or services used for business at less than 10%
- acquisition, lease or rental and operation of passenger cars and station wagons (input tax deduction depending on specific prerequisites)
- zero-rated sales
In case of fixed assets (resp. major repairs): If the circumstances which have been relevant for the input VAT deduction change subsequently, a corresponding positive or negative input VAT correction must be made.
As a general rule, the observation period for input VAT correction is 5 years. The observation period for input VAT correction related to properties is generally 20 years.
Real estate
Rentals
Rental and lease of real property is exempt (with certain exceptions);
lessor may opt for liability to tax, an option (regarding new tenancies) for purchased properties used for business purposes is only possible if the customer uses the property almost exclusively for supplies which do qualify for input VAT deduction (de minimis limit of 5%)
In case construction work had started before September 1, 2012 (also in case of new tenancies) opting for VAT is still unrestrictedly possible (so-called “constructor’s privilege”)
Exception
amongst others, rental for residential purposes (10%), accommodation (10%) resp. short-term rental of property (rental for a continuous period of
a maximum of 14 days), or of plant, equipment and garages (20%)
Sales
Sale of land is exempt, seller may opt for liability to tax at 20%
Electronic application (via FinanzOnline) has to be made by the Austrian taxable person at its competent Austrian tax office at the latest by
September 30 of the following year. Separate applications are required for each member state.
Filing of original invoices is only necessary if required by fiscal authorities of the respective member state.
Minimum amount of refundable input VAT: EUR 400 (EUR 50 if the refund period coincides with the calendar year)
Foreign taxable persons
Taxable persons with no place of business or permanent establishment in Austria
Registration
Mandatory only for domestic supply of goods, toll and admission to events and rentals if there are sales in Austria
Refund of input VAT for taxable persons domiciled in the EU
If no sales are made in Austria, electronic application at the competent tax office in the EU member state (originating country) of the taxable person by September 30 of the following year at the latest.
Refund of input VAT for taxable persons not domiciled in the EU
If no sales are made in Austria, refund has to be applied by June 30 of the following year at the latest.
Official form, original invoices to be submitted. Minimum input VAT refundable: EUR 400 (EUR 50 if the refund period coincides with the calendar year)
Consignment stores
The stocking of the consignment warehouse does not itself constitute an intra-Community movement. Taxation only takes place at the time of removal, which is why a supplier is no longer obliged to register in the country of destination (applicable under certain conditions).
