Austrian VAT rates and VAT compliance
Austrian VAT rates
Whilst VAT compliance rules are set by the EU, Austria is still free to set its standard VAT rate. It may also levy reduced VAT rates on a limited range of goods for economic reason. Businesses VAT registered in Austria must use these rates when supplying goods and services. If they fail to charge the correct rates, they are held liable for any unbilled VAT.
The current rates are:
Austrian Covid-19 VAT rate cuts
Austria has temporarily cut VAT to help support businesses and consumers during the Coronavirus pandemic crisis.
|Supply||Old rate||New rate||Implementation date||End date|
|Non-Alcoholic beverages||20%||10%||01 Jul 2020||31 Dec 2020|
|Hospitality, Culture, some print||10%||5%||01 Jul 2020||31 Dec 2020|
|Rate||Type||Which goods or services|
|20%||Standard||All other taxable goods and services|
|13%||Reduced||Domestic flights; entrance to sporting events; admissions to cultural events and amusement parks; firewood; some agricultural supplies; wine production (from farm); cut flowers and plants for decorative use|
|10%||Reduced||Foodstuffs; take-away food; water supplies; pharmaceutical products; domestic transport (excluding flights); international and intra-community road and rail transport; newspapers and periodicals; printed books; e-books; pay and cable TV; TV licence; social services; domestic refuse collection; treatment of waste and waste water; restaurants (ex all beverages); cut flowers and plants for food production; some agricultural supplies; writers and composers|
|0%||Zero||Intra-community and international transport (excluding road and rail); hotel accommodation|
Austrian VAT compliance
Austrian VAT registration puts a significant burden on companies to prepare invoices and their books to exact rules. This includes:
- Issuing invoices with the disclosure details outlined in the Austrian VAT Act.
- Preparation of e-invoices.
- Maintenance of accounts and records, which must be held for at least seven years.
- Correct invoicing of customers for goods or services in accordance with the Austrian time of supply VAT rules.
- Processing of credit notes and other corrections.
- Use of approved foreign currency rates.
What is the tax point for Austrian VAT?
The tax point (time of supply) rules in Austria determine when the VAT is due. It is then payable to the tax authorities 10 days after the VAT reporting period end (monthly or quarterly).
For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.
Need help with your Austrian VAT compliance?
Researching Austrian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.
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