VAT and Sales Tax in Austria

What is the Umsatzsteuer and how does it work in Austria?

Austria's value-added tax is called Umsatzsteuer (USt), governed by the Umsatzsteuergesetz 1994 (UStG), which implements EU VAT Directive 2006/112/EC. The tax applies at each stage of the supply chain; registered businesses charge output VAT on sales and deduct input VAT on qualifying purchases, remitting only the net balance to the Finanzamt (tax office). Unlike a retail sales tax that falls only at the point of final sale, USt is collected and credited at every stage, making the final consumer bear the economic cost. The Austrian Federal Ministry of Finance (Bundesministerium fur Finanzen, BMF) administers USt nationally. [1]

What VAT rates apply to goods and services in Austria?

Austria applies three positive rates plus a zero rate for exports. The standard 20% rate applies to most goods and services not otherwise listed. The 13% reduced rate covers a specific basket: hotel and tourist accommodation (stabilised at 13% since 1 November 2018), cultural events and museum admissions, domestic air travel, sporting event admissions, live animals and plants, firewood, and winery services. The 10% super-reduced rate covers the broadest range of everyday goods and services: food and non-alcoholic beverages, pharmaceutical products, books and newspapers (including e-books since 1 January 2020), residential rent for long-term housing, public passenger transport, and certain repair services (shoes, clothing, household linen). From 1 January 2026, menstrual products and contraceptives attract 0%. From 1 July 2026, a further reduction to 5% is scheduled for selected staple food items under a draft law aimed at easing household costs. Two small border municipalities, Jungholz and Mittelberg, fall under German VAT law and apply 19%. [1][2]

Who must register for Austrian VAT and obtain a UID number?

Every entrepreneur making taxable supplies in Austria must register unless covered by the Kleinunternehmer exemption (see below). Registration is handled through FinanzOnline, Austria's official tax portal. Austrian-resident businesses that exceed the EUR 55,000 threshold must notify the Finanzamt and complete Form U15 (or U15a) to obtain a UID-Nummer (Umsatzsteuer-Identifikationsnummer). The Austrian UID format is ATU followed by eight digits, for example ATU12345678. Non-EU businesses have no registration threshold and must register from their first taxable transaction in Austria; they must also appoint a fiscal representative (an Austrian entity that shares VAT liability) and apply to Finanzamt Graz-Stadt. EU-resident businesses can use the One-Stop Shop (OSS) scheme instead of registering locally, provided they declare and remit all Austrian VAT through OSS. The UID enables intra-Community supplies to be zero-rated and reverse-charge invoices to be issued; trading partners verify Austrian UIDs through FinanzOnline or the EU VIES portal. [3][4]

What is the Kleinunternehmer small-business exemption and how was it changed in 2025?

The Kleinunternehmerregelung under ss 6 Abs 1 Z 27 UStG exempts businesses with annual net turnover below a threshold from charging or remitting USt. Effective 1 January 2025, the 2024 Abgabengesetz raised this threshold from EUR 35,000 to EUR 55,000, the most significant change in decades. Businesses below the threshold do not charge VAT on invoices, do not remit output VAT, and cannot recover input VAT on purchases. The exemption is automatic for Austrian-resident businesses; voluntary opt-in to full VAT registration under ss 6 Abs 3 UStG is available and binding for five years, often chosen by businesses with high input-VAT exposure. A 10% tolerance applies in the calendar year of first breach before full registration is required. Exempt businesses are also relieved of quarterly or monthly Voranmeldung filing obligations. [5][6]

From 1 January 2025, the EU cross-border SME scheme (implementing EU Directive 2020/285) extends the Kleinunternehmer concept across borders. An EU-based business can claim the Austrian exemption if: (1) annual Austrian turnover stays below EUR 55,000, (2) total EU-wide turnover across all member states stays below EUR 100,000, and (3) the business has registered for the scheme in its home member state and obtained a UID with the -EX suffix. This replaces the prior requirement for multi-state OSS registration for genuinely small cross-border operators. Exceeding the EUR 100,000 EU-wide ceiling triggers immediate full VAT liability in every relevant member state; the 10% tolerance that applies to the national EUR 55,000 threshold does not apply to the EU-wide ceiling. [5]

How do OSS, IOSS, and the reverse charge work for cross-border transactions?

The One-Stop Shop (OSS) under ss 25a UStG (effective 1 July 2021) lets Austrian businesses selling goods or digital services B2C into other EU member states file a single quarterly OSS return through FinanzOnline, covering all destination-state VAT obligations above the EUR 10,000 EU-wide distance-sales threshold. Below EUR 10,000, the supplier may remain taxed in Austria. The BMF routes OSS remittances to the relevant destination-state tax authorities. The Import One-Stop Shop (IOSS) under ss 26b UStG covers imports of goods from outside the EU with an intrinsic value up to EUR 150 per consignment; IOSS registration allows the seller to collect and remit import VAT at checkout, avoiding per-shipment customs VAT collection at the border. Marketplace platforms (Amazon, eBay, Etsy) act as deemed suppliers for IOSS-eligible imports and for EU-internal distance sales below the EUR 10,000 threshold, shifting the registration and remittance obligation from individual sellers to the platform. [7]

The reverse-charge mechanism (Umkehr der Steuerschuldnerschaft) under ss 19 UStG applies to cross-border B2B services within the EU: the Austrian recipient self-accounts for VAT rather than the foreign supplier, who issues a zero-rated invoice marked "Reverse Charge". This covers professional and digital services, SaaS, and most B2B service imports. Domestic reverse-charge also applies to construction services, cleaning services, scrap-metal supplies, and emission-rights trading. Suppliers verify recipient UID validity via VIES before issuing a reverse-charge invoice. [7]

What UVA returns must registered businesses file, and when?

VAT-registered businesses file periodic Umsatzsteuer-Voranmeldungen (UVA) using Form U30 exclusively through FinanzOnline; paper returns have not been accepted since 2011. Businesses whose prior-year net turnover exceeded EUR 100,000 file monthly UVA returns; those at or below EUR 100,000 may file quarterly. The deadline is the 15th day of the second calendar month after the reporting period ends: January returns are due by 15 March; Q1 (January to March) returns are due by 15 May. An annual Umsatzsteuererklärung (Form U1) reconciles the periodic returns and is due by 30 April of the following year if filed on paper, or 30 June if filed electronically via FinanzOnline. Late or incorrect returns attract a surcharge of up to 2% of VAT due per month plus declaration penalties up to 10% of tax owed. [8]

What ViDA changes are coming and when will they affect Austrian businesses?

The EU VAT in the Digital Age (ViDA) package was unanimously adopted by the EU Council on 11 March 2025 (Council Directives 2025/1539 and 2025/1540). The reforms arrive in three waves. From 14 April 2025, member states may introduce mandatory domestic e-invoicing and IOSS framework improvements took effect. From 1 January 2027, minor clarifications to OSS and IOSS filing rules take effect. The most significant change arrives from 1 July 2028: platforms in short-term accommodation rental (Airbnb, Vrbo) and passenger transport by road (Uber, Bolt) become deemed suppliers responsible for collecting and remitting VAT on facilitated transactions; single VAT registration reforms expand OSS scope; and mandatory reverse-charge for non-registered non-resident suppliers begins. From 2030, structured cross-border B2B e-invoicing under EN 16931 and near-real-time digital reporting will replace the current periodic zusammenfassende Meldung (recapitulative statement). Austria has not yet legislated a domestic B2B e-invoicing mandate ahead of the 2030 EU floor, unlike Germany (mandatory receipt from 2025, transmission from 2027) and Belgium (mandatory from 2026). [9]

For businesses trading cross-border across the EU, these reforms mean OSS quarterly returns will increasingly replace multi-state VAT registration, and structured invoice formats will become the compliance baseline. For a broader view of how Austria fits into the European tax landscape, see the Austria country overview.

The rules governing USt are technical and subject to ongoing amendment through EU directives and national legislation. Anyone facing a VAT registration obligation, an OSS or IOSS decision, an audit, or a cross-border reverse-charge question should engage a qualified tax professional before acting.