VAT in Austria guide

VAT rates

In Austria, the VAT rate depends on where the supply is made.

• In the regions of Jungholz and Mittelberg, the standard rate is 19%.
• In the rest of Austria, the standard rate is 20%.
• Reduced rates of 10% and 13% also apply.
• The standard VAT rate applies to all supplies of goods or services, unless a specific provision allows a reduced rate or exemption.

Austrian VAT for digital service providers

Apart from the One-Stop Shop scheme, the general rules for supplies apply to digital supplies as well.

One-Stop-Shop

On 1 July 2021 EU has introduced a so-called “One-Stop-Shop” (OSS) system which has replaced a previously applied “MiniOneStopShop” (MOSS) system. OSS has extended the scope of MOSS from digital goods and services to all goods and services sold B2C in the EU. OSS is an electronic portal that simplifies VAT compliance for online sellers, i.e., online businesses that sell goods and/or services in the EU are now only required to register for VAT in one EU country for all their B2C sales in the EU. If such sellers’ B2C sales in EU are above the applicable threshold, which is 10.000,00 EUR throughout the EU, businesses are liable to charge, collect and remit VAT in the Member State where their B2C buyers are located, instead of the Member State or country of their incorporation, i.e. online sellers have to apply the VAT rate of the Member State where the goods are dispatched or where the services are supplied. AS each EU Member State has an online portal where businesses can register for OSS and submit their VAT returns in one Member State for their B2C sales throughout the EU, it is estimated that VAT compliance costs will be significantly reduced. Registration in the OSS system is available for both – taxable persons established in the EU and outside the EU.

VAT rates

The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of VAT.

Late – registration penalties

Usually, there is no special penalty for late VAT registration. Furthermore, if the tax authorities notice that VAT was not declared and paid due to a non-registration, it could lead to fiscal criminal proceedings.