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Austria VAT Guide (Umsatzsteuer 2026)

Austria levies Umsatzsteuer (USt) at a standard rate of 20%, with reduced rates of 10% (food, accommodation, cultural services) and 13% (certain goods and services). The Kleinunternehmer threshold is €35,000 annual turnover. Reverse charge applies to B2B construction, real estate, and certain cross-border services. Filing is done electronically via FinanzOnline.

The Umsatzsteuer (USt) is regulated by the Umsatzsteuergesetz (UStG) and harmonised with EU VAT directives. Businesses collect VAT on taxable supplies and can recover input VAT (Vorsteuerabzug) on business-related purchases. For related reading, see our Corporate Tax Guide → and Personal Tax Guide →.

VAT Rates (2026)

  • Standard rate (20%): Applies to most goods and services — electronics, clothing, vehicles, professional services, restaurant dining, alcohol, tobacco, and general retail.
  • Reduced rate 10%: Food (excluding luxury items), books, newspapers, magazines, hotel and accommodation (Beherbergung), public transport (except air travel), cultural events (theatre, concerts, museum admissions), passenger transport within Austria, and admission to sports events. Also applies to prescription medicines, medical equipment, and residential rental.
  • Reduced rate 13%: A middle rate applied to specific goods and services including: (a) certain agricultural supplies, (b) waste collection and disposal, (c) plant and animal protection products, (d) wine sold by the producer at the farm gate, (e) certain works of art and antiques, and (f) some entertainment services (cinema, zoos).
  • Exempt supplies: Certain supplies are exempt without input VAT deduction (unecht befreit): health insurance, financial services, insurance, residential property rental, and educational services. Other supplies are exempt with input VAT deduction (echt befreit): exports, intra-EU supplies, and certain international transport.

Reverse Charge and Special Regimes

  • Reverse charge (Reverse-Charge-Verfahren): The recipient of the supply accounts for VAT instead of the supplier. Applies to: (a) B2B construction services (Bauleistungen) — construction, renovation, repair work, (b) real estate transfers where the buyer is a taxable person (Unternehmer), (c) supply of gas, electricity, heat, and cooling, (d) certain domestic services (waste, cleaning, caretaking), (e) cross-border B2B services where the recipient is in Austria and the supplier is abroad. Under reverse charge, the recipient issues a Rechnung with net amount and no USt — the recipient accounts for both output VAT and input VAT simultaneously, resulting in a net zero effect.
  • Kleinunternehmerregelung (small business exemption): Businesses with annual turnover below €35,000 are exempt from VAT (USt-befreit). They do not charge VAT on their invoices and cannot recover input VAT. Exceeding €35,000 triggers mandatory VAT registration from the date of exceedance. The threshold applies to both the prior year and the current year forecast.
  • Flat-rate farmers (Pauschalierung): Agricultural and forestry businesses may use a flat-rate VAT scheme — the farmer charges VAT at 10% or 13% on supplies and can deduct a flat-rate input VAT percentage (approximately 7–10%) without itemising.

VAT Filing and Compliance

  • VAT registration (UID-Nummer): Businesses must register for VAT and obtain a UID-Nummer (Umsatzsteuer-Identifikationsnummer) through FinanzOnline. The registration must be completed before making taxable supplies in Austria.
  • VAT returns (Umsatzsteuervoranmeldung): Monthly filing (monatliche Voranmeldung) is required if the VAT due for the prior year exceeded €15,000. Quarterly filing (vierteljährliche Voranmeldung) applies if VAT due was between €1,000 and €15,000. An annual VAT return (Umsatzsteuerjahreserklärung) must be filed by June 30 of the following year (extendable to March 31 of the second following year if filed electronically).
  • Vorsteuerabzug (input VAT recovery): Businesses can deduct VAT paid on business-related purchases. The invoice must contain: supplier name and UID-Nummer, recipient name and address, invoice date, sequential invoice number, net amount, VAT rate, and VAT amount. Simplified invoices for amounts under €400 have fewer requirements.
  • Penalties: Late filing of Voranmeldungen incurs a Verspätungszuschlag (late filing penalty) of up to 10% of the assessed VAT. Late payment incurs Säumniszuschlag (late payment penalty) of 2% of the overdue amount. Interest (Stundungszinsen) of 2% above the base rate applies to underpayments.