E-Commerce & B2C Services in Austria
The EU VAT reform, implemented on July 1, 2021, impacts owners of e-commerce businesses engaged in cross-border transactions within the EU, or those importing goods from outside of it. The newly introduced VAT scheme, known as One-Stop-Shop (OSS), permits businesses to register for VAT and submit quarterly VAT returns in just one EU member state. Additionally, the Import One-Stop-Shop (IOSS) concept has been established for imported goods.
Read more about B2C services & E-Commerce in Austria in our comprehensive guide.
B2C Services in Austria
The rules regarding the place of supply differ between B2B (business-to-business) and B2C (business-to-consumer) supplies.
Generally, the location where the supplier delivers services is considered the place of supply for B2C transactions. For a business with a permanent establishment supplying the service, the place of supply is deemed to be where this establishment is located, even if the main business is situated elsewhere. This permanent establishment must have both human and technical resources available to provide the services.
If there’s an intermediary involved in the transaction, the place of supply is recognized as where the service is actually provided. Furthermore, various special rules must be considered depending on the type of services offered, as these often follow a destination-based taxation approach. For additional information regarding B2C services in Austria, please visit our contact page or send an email, and one of our VAT specialists will promptly respond to your inquiry.
Selling in Austria?
Digital services in Austria
A digital product is any item or service stored, transported, and utilized in an electronic format, which consumers can access via email, Internet download, or website login. If you wish to sell your digital products in any EU member state, including Austria, it’s mandatory to register with the One-Stop Shop (OSS).
The VAT One Stop Shop (OSS) is a voluntary scheme allowing you to handle VAT in a single EU country, which is beneficial if you offer cross-border telecommunications, broadcasting, or digital services to individuals who aren’t taxable.
Among the OSS services are:
- website hosting
- supply of software
- access to databases
- downloading apps or music
- online gaming
- distance teaching
- accommodation services carried out by non-established persons
- admission to cultural, artistic, sporting, scientific, educational, entertainment events, fairs & exhibitions
Through the OSS, you’re relieved from having to register with the tax authorities in every EU country where you conduct sales. The OSS framework allows you to consolidate the processes of VAT registration, filing VAT returns, and making payments at one singular location. It’s imperative to apply the OSS scheme rules consistently to all your clients across all EU countries where your services or products are provided.
Currently, there are two schemes in operation under OSS:
- The union scheme, which is available to enterprises that have been formed in the EU or that have at least one branch in an EU country.
- The non-union scheme is intended for enterprises that have not been created in the EU and do not have any branches in the EU.
Download the Austrian VAT Guide
New E-commerce rules in Austria
Section 3 of the VAT Act defines the place of supply of goods as the location where the right to dispose of the goods transfers to the recipient. Naturally, goods supplied within Austria fall under Austrian taxation since Austria is their place of supply.
Transporting Goods
Typically, a supply that involves transporting goods originating from Austria is considered made in Austria, unless the supplier assembles the goods outside Austria, either by the supplier itself or on its behalf.
EU VAT Reform
Effective from July 1, 2021, the EU VAT reform impacts e-commerce business owners engaging in cross-border transactions within the EU or importing goods from non-EU countries. The newly introduced One-Stop-Shop (OSS) system facilitates businesses to register for VAT and submit quarterly VAT returns in a single EU member state, simplifying the process for enterprises. The OSS extends the previously existing Mini One-Stop-Shop (MOSS) scheme, focusing on VAT for specific digital products in the EU. Both the OSS and MOSS aim to ease tax compliance, lighten administrative burdens for businesses, and enhance tax collections.
With the OSS in place, businesses can consolidate their VAT registration and return filing processes in one country, eliminating the need to navigate through various distance-selling thresholds for multiple countries. Previously, the annual distance-selling threshold for Austria was EUR 35,000, which is now replaced by a uniform EU-wide threshold of EUR 10,000.
OSS and IOSS
While the OSS is designed for EU-based businesses selling goods to customers within the EU, the Import One-Stop-Shop (IOSS) caters to non-EU businesses selling products valued at up to €150 to EU customers, with standard VAT import rules applicable in this scenario.
Last Updated: 12/10/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
