Austria has updated its VAT rules for 2025, confirming a €55,000 annual registration threshold for resident businesses, no threshold for non-residents, and specific limits for OSS and intra-community acquisitions. The guidance reiterates applicable VAT rates, filing deadlines, invoicing requirements, and penalties, while maintaining special provisions for foreign businesses, VAT grouping, and certain reverse charge transactions.
Austria Updates VAT Rules and Registration Thresholds for 2025
Public
Austria
Author: Ivana Picajkić
Category:
Fiscal subject related
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70
Content accuracy validation date:
15.08.2025
Content accuracy validation time:
08:23h
Austria has issued updated guidance on its Value Added Tax (VAT) regime, including changes to registration thresholds and a reminder of existing rules for domestic and foreign businesses.
The country applies a standard VAT rate of 20%, with reduced rates of 13% and 10% for certain goods and services. The reduced 10% rate covers items such as passenger transport, food, books (including e-books), newspapers, residential property rental, and tampons. The 13% rate applies to hotel accommodation and entry to sporting and cultural events. A VAT cut has also been announced for menstrual products and contraception.
Austria’s annual VAT registration threshold is set at €55,000 for resident businesses, with no threshold for non-residents. A €10,000 limit applies for pan-EU digital services and goods under the OSS (One Stop Shop) scheme, while intra-community acquisitions have an €11,000 threshold. Voluntary registration is permitted.
Foreign businesses can recover Austrian VAT, but non-EU companies (with the exception of the UK and Norway) must appoint a fiscal representative. Austria allows VAT grouping for businesses with economic and control links, giving them a single VAT number and consolidated return.
Invoices must generally be issued within six months or on the 15th of the following month for intra-community supplies. Electronic invoicing is permitted with mutual agreement, and simplified invoices are allowed for amounts under €400.
VAT returns are typically filed monthly, with quarterly filing allowed for annual turnover under €100,000. Annual returns are due by 30 June of the following year. All returns must be submitted electronically, with VAT payments due by the same deadlines.
Penalties include fines of up to 10% of VAT due for missed returns, 2% for late payments, and 1% for unfiled European Sales Listings.
Austria also maintains specific rules for reverse charge supplies, import VAT deferment, digital services, live events, and distance sales, following EU VAT directives. The country operates a limited split payment regime for certain transactions with non-resident suppliers.
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