Austria’s 2025 tax reform introduces significant relief for small businesses, including a higher VAT exemption threshold of €55,000, simplified invoicing for amounts over €400, and a planned exemption from issuing receipts for payments under €35. Additional measures include a NoVA tax exemption for light commercial vehicles starting July 2025 and streamlined approval processes to reduce red tape and support SME growth.
Austria’s 2025 Tax Reform for Small Businesses
Public
Austria
Author: Ivana Picajkić
Category:
Fiscal subject related
General information
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1465
Content accuracy validation date:
04.08.2025
Content accuracy validation time:
08:08h
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.
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