VAT in Austria
We can provide you with the following services:
- VAT registration of a foreign company
- VAT representation of a foreign company before the local tax authorities
- Application for a national VAT ID number for a foreign company
- Application for a customs registration (EORI number)
- Preparation of the monthly, quarterly or annual VAT returns
- Preparation of EC sales list
- Preparation of other reports that may be required (e.g. Intrastat)
- Claims for VAT refunds
- Review of incoming and outgoing invoices according to national VAT rules to avoid tax risks
- Review of VAT assessment notes
- Handling correspondence with the national tax authorities and other financial authorities
- VAT consulting regarding exemption rules, payments, tax rates etc.
- In the case of problems, handling objections and legal Claims
- Support in tax audits and other inquiries by fiscal authorities
The following paragraphs provide a brief overview of the Austrian VAT:
Austria is part of the EU single market economy. Therefore it comes under the EU VAT Directive which has to be implemented into local legislation.
There are several reasons for registration for VAT in Austria. The most common is that a company located in Austria providing goods or services.
Foreign companies have to register for VAT in Austria if they carry out transactions in Austria, for which the reverse charge system is not applicable. Furthermore they have to file advance VAT returns and annual VAT returns.
Common transactions which lead to a mandatory registration are:
- Buying and selling goods within Austria
- Importing goods into the EU via Austria
- Acquiring goods from other EU countries into Austria.
- Holding goods in a warehouse in Austria as stock
- Selling goods from Austria to other EU countries
- Distance selling to private individuals in Austria from another EU country (if turnover threshold is exceeded)
The period between the apply and the issue of a VAT number varies, usually it takes between two and eight weeks.
Non-EU companies have to engage a fiscal representative and notify his name to the tax office. There are certain exemptions to this regulation.
The standard VAT rate is 20 %, there are reduced rates of 13 %, 12 % and 10 %. Also there are rules for tax exempted turnover.
During the year, advance VAT returns have to be filed monthly (quarterly if the yearly turnover doesn’t exceed EUR 100.000). The returns are due one and a half months after the end of the reporting period.
After the year has ended, an annual return has to be filed.
EC sales lists
If goods are delivered from Austria to another EU country, EC sales lists have to be filed monthly or quarterly (depending on the VAT reporting period). An EC sales list contains information concerning on the VAT numbers and invoiced amounts. It has to be filed until the end of the following month.
If dispatches or arrivals of goods from or to EU countries exceed the threshold of EUR 750.000, intrastat declarations have to be filed. The declaration has to be filed until the 10th working day from the end of the reporting month.
As the Austrian VAT law is very formal, there are requirements for
- mandatory parts of an invoice
- invoices in foreign currencies
- correcting errors in returns already filed
- storage rules for accounting records
Austrian VAT refund
Foreign companies, which are not subject to VAT in Austria, can reclaim Austrian Input VAT through a VAT refund procedure.