VAT in Austria: Rates, Registration and Compliance Guide 2026

Doing business in Austria requires familiarity with the country’s tax regulations, particularly Value Added Tax (VAT), known locally as Umsatzsteuer (USt). Understanding the Austrian VAT system is essential for any entrepreneur operating in or selling into the country. This guide covers the key aspects of VAT rates, registration, declarations, refunds, and Intrastat obligations as they stand in 2026.

VAT Rates in Austria

Standard and Reduced Rates

Four main VAT rates apply in Austria in 2026:

• 20% — the standard VAT rate, applicable to most goods and services
• 13% — first reduced VAT rate, applied to tickets for domestic flights, admission to sports and cultural events, amusement parks, firewood, certain agricultural products, home wine production, cut flowers, and decorative plants
• 10% — second reduced VAT rate, covering foodstuffs, takeaway food, water supplies, domestic transport, international railway transport, newspapers and magazines, printed books and e-books, paid and cable television broadcasting, social services, household waste collection, plants intended for food production, certain agricultural products, hotel accommodation, restaurant services, and the activities of writers and composers
• 0% — applies to intra-community and international transport (excluding road and rail transport), as well as feminine hygiene products and contraceptives (from 2026)

New 5% Rate from 1 July 2026

Austria has introduced a new approximately 5% reduced VAT rate for a specific basket of essential food products under § 10(1a) UStG 1994, effective 1 July 2026, aimed at lowering consumer costs. The rate applies only to goods matching precisely defined customs nomenclature (CN) codes. Businesses supplying these products must ensure accurate product classification to apply the correct VAT rate.

Regional Rate: Jungholz and Mittelberg

A special regional VAT rate of 19% applies in the municipalities of Jungholz and Mittelberg, which are geographically accessible only from Germany and are governed by German VAT law for practical purposes.

Austrian Tax Office

Foreign companies from EU countries wishing to register for VAT in Austria must contact the Austrian Tax Office in Graz (Finanzamt Österreich), which is the central authority responsible for VAT registration for foreign businesses. VAT registration for companies with a permanent establishment in Austria is handled by the local tax office responsible for the company’s registered address.

VAT Registration

When Is VAT Registration Mandatory?

VAT registration in Austria is required in several cases, including when a business:

• Imports goods into Austria from outside the EU
• Exports goods from Austria to outside the EU
• Sells goods in Austria
• Makes intra-community acquisitions of goods (IAC)
• Makes intra-community supplies of goods (ICS)
• Stores goods in Austria
• Provides construction services in Austria

Registration Threshold

From 1 January 2025, the annual sales threshold for compulsory VAT registration for resident businesses rose from €35,000 to €55,000. Foreign (non-resident) businesses are generally required to register from their first taxable transaction in Austria, with no turnover threshold applicable.

Registration Procedure

To comply with Austrian VAT law, a VAT number must be obtained before commencing taxable activities. VAT registration can take between 50 to 60 days, so it is advisable to begin the process well in advance of planned transactions to avoid penalties and interest charges.

VAT Declarations and VAT Payment

Frequency of Filing

In Austria, VAT declarations are filed monthly or quarterly, depending on turnover. The tax office specifies the required frequency at the time of VAT registration:

• Monthly declarations — required for businesses with annual net turnover above €100,000; due by the 15th of the second month following the accounting period
• Quarterly declarations — available for businesses with annual turnover below €100,000; due by the 15th of the month following the end of the quarter

Annual VAT Declaration

Every VAT-registered taxpayer in Austria must submit an annual VAT declaration summarising all transactions made during the fiscal year. The deadlines are:

• 30 April of the following year for paper declarations
• 30 June of the following year for electronic declarations submitted via the FinanzOnline system

Ensuring Compliance

Key Compliance Obligations

Conducting taxable activities in Austria requires adherence to several key principles:

• Issuing invoices in accordance with Austrian VAT law
• Keeping transaction records and archiving documents for at least 7 years
• Using approved exchange rates for transactions in foreign currencies
• Responding promptly to tax authority enquiries and providing required documents during audits

Invoice Requirements

A correctly issued VAT invoice must include:

• Seller’s details: name, address, VAT number
• Buyer’s details: name, address, VAT number
• Invoice number
• Date of issue and date of delivery of goods or services
• Description of goods or services, quantity or weight
• Net amount, VAT amount, gross amount
• Applied VAT rate
• Annotations on VAT exemptions or reverse charge where applicable
• Currency in which the invoice was issued

VAT Refund in Austria

EU-Based Companies

EU-based companies without a permanent establishment in Austria can apply for VAT refunds for purchases made in Austria. Applications must be submitted electronically through the FinanzOnline portal by 30 September of the year following the year in which the costs were incurred. The minimum refund amount is €400 for periods shorter than a year and €50 for annual settlements.

Non-EU Companies

Non-EU companies can apply for VAT refunds provided they have no establishment or taxable turnover in Austria. Applications are submitted electronically through the FinanzOnline portal within six months from the end of the calendar year in which the right to a refund arose.

Reverse Charge in Austria

The VAT reverse charge mechanism in Austria shifts the responsibility for paying VAT from the supplier to the recipient of goods or services. This mechanism applies mainly to foreign companies providing services such as construction, advisory, legal, licensing, telecommunications, and electronic services, and also to the supply of certain goods such as precious metals. Full details are available on the Austrian tax authority’s website.

Tax Penalties

Failure to comply with tax obligations can result in the following penalties:

• 2% of the VAT due for late payment
• 10% of the VAT due for failure to submit a declaration on time

Intrastat in Austria

Foreign companies operating in Austria that conduct intra-EU trade in goods may be required to file statistical data through Intrastat, submitted to Statistik Austria.

Intrastat Thresholds for 2026

From the 2026 reporting year, the Intrastat thresholds in Austria are €5,000,000 annually for arrivals (intra-EU imports) and €1,200,000 annually for dispatches (intra-EU exports). These represent a significant increase from the previous €1,100,000 threshold that applied to both flows.

Companies that did not exceed these thresholds in 2025 are exempt from submitting Intrastat declarations for 2026. However, if a threshold is reached or exceeded during the year, the reporting obligation applies immediately from the month in which the threshold was crossed, and only for the relevant trade flow.

Filing Deadline

Monthly Intrastat reports must be submitted by the 10th day of the month following the reporting period. Failure to submit on time may result in administrative penalties.

Summary

The Austrian VAT system is comprehensive and requires businesses to keep pace with both stable rules and emerging changes — including the new ~5% food rate from July 2026, the 0% rate for hygiene products, raised Intrastat thresholds, and the updated domestic registration threshold of €55,000. Understanding and complying with these regulations is essential for conducting business in Austria legally and efficiently. We encourage you to seek specialist assistance to avoid issues with the tax authorities: Contact us – amavat®.