VAT in Austria

The value added tax (VAT) is one of the most important taxes applied by the Austrian Government. It is regulated by the VAT Act and it is administered by the Ministry of Finance. The VAT is an indirect tax applied as it is imposed to Austrian companies and collected from the buyers of goods or services. Foreign investors opening companies in Austria are required to obtain a VAT number upon the registration of the company with the Trade Register.

Our company formation agents in Austria can assists enterprisers who want to open a company in this country.

VAT rates in Austria

The VAT is imposed at certain rates in Austria. The standard rate of the Austrian value added tax is 20%. Since the 2016 tax reform (which moved several items from 10% to 13%), the reduced rates are:

• a 13% for local flights, sport event entrances, wine production, the supply of certain agricultural products;
• a 10% rate for water supply, medicines, local transportation, newspapers and books, social services, hotel accommodation and several other services and products.

Since 1 July 2026, a 4.9% rate applies to selected staple foods listed in Annex 3 to the VAT Act, and a 0% rate applies to certain products and services. You can also rely on the accounting services provided by our agents in Austria.

VAT registration in Austria

Even if VAT registration is not required, Austrian companies are advised register and obtain a VAT number because it can be deducted through the annual VAT returns. Even if there is no registration threshold, certain companies are required to apply for a VAT number. These are:

• –          companies selling goods in Austria or in the EU;
• –          companies storing goods for resale purposes;
• –          companies involved in distance selling activities;
• –          companies offering procurement services;
• –          companies organizing various events;
• –          restaurants.

Annual VAT returns must be filed electronically by 30 June of the next year. Companies in Austria must also  file monthly and quarterly VAT documents and pay the VAT related to those periods. Companies in the EU are also entitled to claim VAT refunds in Austria by 30 September of the year following the refund period (via the portal of their home Member State).

Requirements for VAT compliance in Austria

Companies that are eligible for VAT exemption are those that have an annual gross turnover that does not exceed EUR 55,000 (since 2025). All other types of companies are required to register for VAT purposes with the Austrian tax authorities.

Monthly VAT returns are due in Austria and a yearly return is due by the end of June each year. Quarterly return submissions are possible but only if the taxpayer had an annual turnover of up to EUR 100,000 in the previous calendar year. 

VAT grouping is possible in Austria if the parent company has a certain level of control over its subsidiary in Austria.

If you want to open a company in Austria and need assistance with the VAT registration procedure, please contact us. Our company registration consultants in Austria can also assist you with the company formation process.