Fiscal subject related
General information
Starting in 2025, Austria is introducing a set of tax reforms aimed at lowering the tax burden, modernizing the system, and supporting small and medium-sized enterprises (SMEs). The changes are designed to encourage investment, simplify administration, and help new and growing businesses.
What are the changes?
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Higher VAT Exemption Threshold
From January 1, 2025, businesses with annual revenue up to €55,000 (up from €35,000) will be exempt from VAT. This helps small businesses and freelancers reduce compliance costs.
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Simplified Invoicing Rules
Businesses can issue simplified invoices for amounts over €400, as long as they include six required details: date, issuer, address, service description, total amount, and VAT rate. If VAT exemption applies, it must be noted on the invoice.
Additional tax relief for SMEs:
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NoVA Tax Exemption
NoVA stands for Normverbrauchsabgabe, which translates to Standard Consumption Tax in Austria. It is a one-time tax that applies when a new vehicle is first registered in Austria.
Light commercial vehicles will be exempt from the NoVA tax starting in July 2025.
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Receipt Exemption for Small Payments
Businesses will no longer be required to issue receipts for payments under €35. The Austrian government announced plans to abolish the mandatory issuance of receipts for purchases up to €35, it is still not officially confirmed.
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Faster Approvals and Less Red Tape
The government plans to speed up business approvals and reduce administrative barriers.
Other news from Austria
New Austrian Decree Updates Cash Register and Receipt Requirements
Austria
Author: Ivana Picajkić
The Federal Ministry of Finance has republished its decree on cash registers and receipt obligations, replacing the 2019 version and updating compliance rules for businesses and certain public or non-profit entities. The revised framework raises thresholds for simplified cash-based recording to €45,000 turnover while confirming that entities exceeding set limits must transition to electronic cash... Read more
Overview of E-Invoicing in Austria
Austria
Author: Austria
In Austria, electronic invoicing is mandatory for suppliers invoicing federal public authorities, requiring the use of structured formats (e.g., EN 16931, ebInterface, or Peppol) via platforms like e-Rechnung.gv.at or the Peppol network. However, for B2B transactions e-invoicing remains voluntary, although widely used for efficiency and automation. Austria was one of the first countries in Europe... Read more
Austria Introduces a New 4.9% Reduced VAT Rate for Essential Food
Austria
Author: Ivana Picajkić
Austria has introduced a new 4.9% reduced VAT rate for specific essential food products under § 10(1a) UStG 1994, effective July 1, 2026, to lower consumer costs. The rate applies only to goods precisely matching defined CN codes, requiring businesses to ensure accurate product classification to avoid incorrect VAT treatment and compliance risks. Austria has adopted an amendment to the Austrian VA... Read more
New document was uploaded: E-commerce Austria - Legal requirements
Austria
Author: Ivana Picajkić
This document is a professional presentation and compliance guide prepared by Fiscal Solutions that explains the fiscalization framework and e-commerce regulatory environment in Austria. It provides an overview of Austria’s fiscal cash register system, legal obligations, security requirements, and receipt rules, as well as thresholds and exemptions relevant to businesses. The presentation also clarifies how online sales are treated under Austrian law, highlighting when e-commerce transactions are exempt from fiscalization and when cash-on-delivery scenarios trigger fiscal obligations. Read more
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Already subscriber? LoginAustria: VAT Overview 2026
Austria
Author: Ivana Picajkić
Austria applies an EU-aligned VAT system (Umsatzsteuer, USt) with a 20% standard rate, 13% and 10% reduced rates, an upcoming 0% zero-rating for menstrual products and contraceptives from 2026, and strict rules on registration, invoicing, and reporting. Read more
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Already subscriber? LoginNew document was uploaded: S4FiscalBackoffice Patch
S4F backoffice patch is intended for users who have already installed S4F backoffice and are intended to update existing installations to latest version. To do so apply only patches that are marked with version number that is newer than your currently installed instance of backoffice. Please make sure to install all available patches sequentially (without skipping). This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Read more
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Already subscriber? LoginAustria to Cut VAT on Essential Food from July 2026
Austria
Author: Ivana Picajkić
Austria will halve VAT on selected essential food products from 10% to 5% starting 1 July 2026, aiming to ease household living costs and deliver immediate savings at the checkout amid persistent food price pressures. The measure, confirmed on 14 January 2026, is part of a broader anti-inflation strategy and will be partly funded through new taxes on non-recyclable plastics and fees on non-EU parc... Read more