Green Circle Talks about Cross-border】Austria Value-added Tax (VAT) Details

I. Introduction to Austrian VAT
Value-added tax (VAT) is an indirect tax based on the value-added of goods and services, which is widely applied in the European Union (EU). The Austrian VAT is based on the framework of the EU's common VAT system, which covers the production, distribution and final consumption of goods and services.

II. Austrian VAT rate
There are three main types of VAT rates in Austria:

1. Standard tax rate: 20%

Suitable for most goods and services.

2. Preferential tax rate: 13%

It applies to certain specific goods and services, such as cultural events and some agricultural products.

3. Minimum tax rate: 10%

Suitable for food, medicine, books, newspapers and other basic necessities.

Conditions for VAT registration
If your business sells in Austria and meets one of the following conditions, you will need to register your VAT:

1. Fixed place of business in Austria: VAT registration is mandatory regardless of the sales volume.
2. Threshold for remote sales: VAT registration in Austria is mandatory for annual sales of more than €10,000 within the European Union.
3. Importing goods into Austria: Regardless of the volume imported, VAT registration is required.

Registration Process

1. Prepare materials:

Business Registration Certificate

Proof of corporate identity

Corporate Bank Account Information

2. Submit an application:

Online submission: Submit your application online via the Austrian Tax Administration website.

Paper submission: Fill out the registration form and mail it to the Austrian tax office.

3. Waiting for approval:

The IRD will scrutinize the information submitted, which usually takes 2-4 weeks.

V. Declaration and Payment

1. Reporting cycle:

Monthly reporting: Businesses with annual sales of more than €1 million are required to report monthly.

Quarterly reporting: Enterprises with annual sales between €100,000 and €1 million can report quarterly.

Annual reporting: Businesses with annual sales below €100,000 can choose to report annually.

2. Declaration content:

Sales revenue, tax payable, input tax, etc.

VI. Points to Note

1. Record sales and input tax correctly: Ensure that all invoices and receipts have the correct VAT information.
2. Timely filing and payment: Avoid late filing and payment to avoid penalties and late fees.
3. Familiar with changes in tax regulations: Keeping abreast of changes in the policies of the Austrian Tax Administration, and making timely adjustments to the company's tax treatment.

VII. VAT EORI numbers
The EORI number (Economic Operators Registration and Identification number) is an identification number for economic operators in the European Union and is particularly important for businesses engaged in cross-border trade. The steps to apply for an EORI number are as follows:

1. Prepare materials:

Business Registration Information

Proof of corporate identity

2. Submit an application:

Online application: Apply online through the website of the European Union's Directorate General for Taxation and Customs.

3. Waiting for approval:

Approval time is usually 1-2 weeks.

The Austrian VAT system is similar to that of other EU countries, but differs in terms of tax rates, filing cycles and other details. Understanding and complying with these rules not only ensures compliance, but also avoids unnecessary tax risks.