Austria VAT Rates and Compliance (2026)

Learn about Austria’s 2026 VAT rates, registration rules, invoicing, and compliance tips for businesses selling goods or digital services.

Published:

June 16, 2026

Rates and Thresholds

Tax Rate

20%

Non-Resident Threshold

First sale

Taxable Transactions

• B2B Sales: Reverse charge
• B2C Sales: Yes

VAT Overview

Austria joined the EU in 1995, in part to join the EU’s Single Market. Today, companies from around the world sell to customers in Austria and must comply with Austria's tax regulations. These regulations align with those of other EU member states. Compliance means collecting and remitting value-added tax (VAT) when required. VAT is a consumption tax similar to sales tax in the U.S., but it is paid at every stage of the supply chain.

Austrian VAT

The European Union has created a VAT framework that member states adhere to. Companies that sell goods or services to customers in EU countries must collect and remit VAT even if they do not have a physical presence in the EU.

Different VAT rates

In Austria, the standard VAT rate is 20%. However, certain products have reduced rates of 10% or 13%:

• 10% Rate Applies To:

  • Most food products
  • Pharmaceutical products
  • Some passenger transport
  • Books, newspapers, and periodicals
  • TV licenses
  • Hotel accommodations
  • Restaurants
  • Repairs of shoes, clothing, household linens, and leather.

• 13% Rate Applies To:

  • Some food products
  • Some types of passenger transport
  • Admission to plays and certain other cultural activities.

Reverse charge mechanism

The reverse charge mechanism applies in specific situations where the recipient of a good or service is required to pay VAT instead of the seller. This includes:

• Supplies by foreign taxable persons for certain services in Austria.

Statute of limitations

There is a five-year statute of limitations for the collection of taxes in Austria, which increases to 10 years in cases of tax evasion.

Registering for VAT

Resident vs. nonresident businesses

Resident businesses have a physical presence in Austria, while nonresident businesses sell to Austrian consumers but do not have a physical presence.

Who needs to register for VAT in Austria?

• Nonresident businesses from outside of the EU making taxable sales in Austria must register to collect VAT from their first transaction.
• Resident businesses must register if their turnover exceeds €55,000.
• EU-based businesses selling in multiple EU countries can register under the One-Stop Shop (OSS) scheme if they hit a total threshold of €10,000.

How do you register for VAT in Austria?

Registering requires obtaining a VAT Identification number, which is done using forms from the Austrian tax office.

When to appoint a tax or fiscal representative

A non-EU company must appoint a fiscal representative to comply with VAT obligations when selling taxable goods or services in Austria.

When to charge tax

Here’s what you need to know about when to charge taxes:

Taxable vs. exempt

Most goods and services are taxed, but some are exempt, including:

• Financial services.
• Educational services.
• Health expenses.
• Postal services.
• Renting immovable property.

Digital products

Digital products such as e-books and software are subject to VAT in Austria.

B2B vs. B2C

B2C companies must comply with VAT obligations, while B2B may find that the reverse charge applies.

VAT deductions

VAT can be deducted in business transactions under certain conditions, requiring an invoice that meets specific criteria.

Compliance requirements

Invoicing

Companies are required to issue e-invoices under certain conditions, though this is not mandatory for all transactions.

Filing VAT returns

VAT Returns must be submitted electronically.

Filing deadlines

Returns may need to be submitted monthly or quarterly based on turnover. The deadlines are the 15th of the second consecutive month after supply.

Recordkeeping

Companies should maintain records of taxable transactions for at least seven years.

Risks of noncompliance

Audits

Taxing authorities may conduct audits if obligations are not met.

Penalties

Penalties vary based on misconduct and may incur interest rates and additional charges for late submissions.

Simplifying the process

Following Austria's VAT rules can be complex, especially for nonresident companies. It is essential to get help to understand tax rules when conducting business in multiple locations.