Austria marketplaces’ sellers VAT obligations 2020

Austria is to impose on digital marketplaces detailed record keeping obligations covering transactions on their platforms by third-party sellers. This is part of the Austria Digital Tax Act 2020.

The new requirements come into place on 1 January 2020. All online goods, digital services and sharing economy platforms are affected. They will only be required on a on-request basis for seller details, values of transactions and associated VAT liabilities of sellers to the tax authorities. Failure to comply could make the marketplaces liable for any unpaid VAT due from merchants on their sites.

Marketplaces will be obliged to collect sellers' VAT numbers by 31 December 2020. This will be once EU sellers pass the Austrian distance selling threshold, or any EU or non-EU seller is holding stocks in Austria for domestic sales.

The Austrian model is less draconian that the German requirement for platforms to seek Tax Certificates for their third-party sellers to prove their VAT compliance is up-to-date. France is to require marketplaces to check the correct VAT registration status of their online sellers from 2020. The UK marketplace seller VAT checks came in 2018. Italy's marketplace quarterly transaction reporting regime becomes law from October 2019.