Tax rate by region Austria

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

VAT System in Austria: A Streamlined Framework for Tax Administration

The VAT (Value Added Tax) system in Austria aligns with EU regulations, establishing a streamlined framework for tax administration in accordance with the “Sixth Council Directive 77/388/EEC.” Implemented in 1973, this system unifies procedures within the European Union, enhancing compliance and ensuring tax efficiency for businesses operating within the region.

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Austria

Austria adopted the EU VAT system in 1973, integrating with European tax regulations to enhance compliance and efficiency.

Official government link: Bundesministerium für Finanzen

20.00%

E-products and services VAT/Sales tax rate

10.00%

Reduced tax rate

Reduced tax rate product categories

E-Books and electronical publications

Exempted product categories

No digital goods or services categories are exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Non-resident companies have to register as soon as goods are being delivered or services are being provided

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

Check Eligibility: Confirm your business needs to register for VAT.
Gather Documents: Collect necessary documents (registration form, proof of identity, etc.).
Submit Application: Send the completed form and documents to the tax office in Graz-Stadt.
Appoint Fiscal Representative: If outside the EU, appoint a fiscal representative.
Receive VAT Number: Wait for your unique VAT number (4-6 weeks).
Start Reporting: Begin filing VAT returns and paying VAT.

List of digital and electronic services liable for tax

E-books and digital publications, music downloads and streaming services, online courses and educational content, software and applications (including mobile apps), video games and in-game purchases, subscription-based services (such as streaming platforms like Netflix), cloud storage and computing services, digital advertising services, website hosting and domain registration, and online newspapers and magazines are all examples of digital products and services.

Penalties

Penalties may be incurred for late payment, late filing and misdeclarations. In severe cases, Austrian tax authorities can initiate fiscal criminal law proceeding, but penalties can also be mitigated if a voluntary disclosure is made.

Filing interval

Monthly: if turnover exceeds EUR 100.000
Quarterly: if turnover is up to EUR 100.000
Annually: Annual VAT return has to be filed regardless of turnover value

Filing deadline

Monthly and quarterly: The 15th of the second month following the end of the reporting period

Annually: Must be filed by June 30 of the following year

E-invoicing requirements

Not mandatory

How-To Guides: Austria SaaS VAT

Step: 1 Threshold

Effective July 1, 2003, Austria requires non-EU vendors (including online platforms) of digital services to consumers (B2C) in Austria to register for and collect VAT, regardless of the sales amount. The obligation was expanded to EU-established digital services providers effective January 1, 2015. Effective January 1, 2019, Austria applies a VAT registration threshold of EUR 10,000 for EU-established digital services providers. The threshold does not apply to non-EU businesses.

Step: 2 Business Registration

Managed by the Austrian Tax Office (Finanzamt Österreich). Non-EU entities must appoint a local fiscal representative (except UK/Norway).

Step: 3 TIN/VAT Number

The UID-Nummer (Umsatzsteuer-Identifikationsnummer) issued by the Austrian Tax Office using Form U15.

Step: 1 Standard VAT Rate

In Austria, the standard VAT rate is 20%.

 

Step: 2 Determine if you need to register.

To calculate your tax rate, consider this formula: 

Formula: Net Price X 20.00%

Step: 3 Reverse Charge (B2B)

Applies to cross-border B2B SaaS. The Austrian buyer is responsible for accounting for the VAT. The seller does not charge VAT on the invoice if a valid VAT ID is provided.

Step: 1 Selling B2C

Seller must charge 20% Austrian VAT. Registration via the One-Stop Shop (OSS) is recommended to avoid multiple EU registrations.

Step: 2 Selling B2B

Tax is not charged by the seller. The invoice must state “Reverse Charge” and include the buyer’s VAT ID.

Step: 3 Invoice Requirements

Mandatory fields:

  • Supplier & Buyer name/address
  • Supplier VAT ID
  • Buyer VAT ID (for B2B)
  • unique sequential number
  • date of issue
  • date of service
  • description (SaaS)
  • Net Amount
  • VAT Rate
  • VAT Amount in EUR.

Step: 1 Filing Interval

Monthly (if annual turnover > €100,000) or Quarterly (if turnover ≤ €100,000).

Step: 2 Filing Deadline

15th day of the second month following the period (e.g., Jan return is due March 15).

Step: 3 Submission

Submitted via FinanzOnline, the official e-filing portal. Payments are made via bank transfer.

Step: 4 Record Keeping

Minimum 7 years (10 years if using the OSS scheme).

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Austria’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

Overwhelmed by SaaS sales tax compliance?

Our team of SaaS tax experts is here to help. Contact us today for a free consultation.

 

 

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