All EU member states have a fixed format for their VAT numbers. In Austria, it includes 8 digits and the prefixes AT and U (e.g., ATU12345678).
The standard VAT rate in Austria is 20%, with reduced rates of 13% and 10% on certain goods and services. Some services are exempt from Austrian VAT, like transport and some hospitality services.
5% (Reduced due to Covid-19) - some services, like restaurant and hospitality services, admissions to cultural and sporting events, are taxed at the 5% VAT rate due to the Covid-19 crisis. This measure will be in force until December 31, 2021.
All businesses with Austrian VAT number must submit periodic VAT reports and payments.
For all companies that operate in Austria, VAT returns must be submitted depending on the yearly revenues generated:
In the case of the late filing of VAT returns and payments, the Austrian government prescribed the penalties as follows:
Failure to register and late registration
Late submission of VAT returns can trigger a fine of up to 10% of the VAT due.
Periodic VAT returns that are incomplete or contain incorrect information can be corrected during the relevant fiscal year. In case the amended periodic VAT return or the annual VAT return results in additional VAT is due, the Austrian tax authorities generally impose a penalty for late payment of VAT.
If accounts are not kept in accordance with VAT requirements, VAT may be assessed up to EUR 5,000 by the tax authorities.
Full VAT invoices issued in Austria must contain the following:
All suppliers billing the Government are obligated to submit their invoices electronically.
For B2B and B2C, tax regulations do not recognize an obligation for the service provider to issue an electronic invoice. However, there is a possibility of issuing such an invoice.
Date updated [May 12, 2021]
The Austrian digital services tax will be imposed at a rate of 5% on the turnover from advertising services rendered by service providers in Austria. According to Article 1, section 1 of the law, a digital advertising service will be deemed to be rendered in Austria if the digital advertisement is received on a device with an Austrian IP-address and if the advertisement (also) addresses Austrian users.
Other terms in the legislation are defined as follows:
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