A taxable supply refers to the provision of goods or services that attract a VAT rate, including those at a zero rate. In Austria, sellers of goods and services who are registered for VAT are obligated to apply and collect the correct VAT rate, then remit this tax to the Austrian tax authorities through a VAT filing system.
The standard VAT rate in Austria stands at 20%, with some areas applying a 19% rate. Additionally, certain goods and services are taxed at an intermediate rate of 13% or at a reduced rate of 10%. A temporary second reduced rate of 5% was also introduced in response to the Coronavirus pandemic. Notably, services in sectors like banking, health, and education are exempt from VAT.
Standard VAT rate |
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The standard VAT rate is the primary rate of VAT applied to goods and services within a country, covering most items except for certain specific goods and services that may qualify for a reduced rate. Some exceptions include essential items or goods and services that meet certain criteria outlined below. | |||
Rate | Good or Services | ||
20% | Applies to all taxable supplies, with certain exceptions | ||
19% | Special Standard rate
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Supplies and services rendered to customers residing in the town of Jungholz or the municipality of Mittelberg. The reason being is that these locations mentioned are part of the Republic of Austria but are in the German region. | |||
Reduced VAT rates |
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Below are some goods and services that may be eligible for a reduced value-added tax (VAT) rate, and are subject to potential modifications: | |||
Rate | Good or Services | ||
13% | Intermediate rate | ||
Domestic flights | |||
Access to swimming facilities | |||
Farm animal feed and seed supplies | |||
Admission to athletic competitions | |||
10% | First Reduced rate | ||
Leasing residential properties for personal use | |||
Broadcasting services subject to specific licensing fees | |||
Distribution of trained assistance animals | |||
Transportation of commuters or travelers | |||
Maintenance and repair services for clothing, footwear, or textile goods | |||
Trash collection and waste management services | |||
Specific items listed in the VAT Annex that are subject to taxation such as certain animals, meat, vegetables, butter and oils, and drugs | |||
5% | Temporary Second Reduced Rate (until December 31, 2021) | ||
Provision of meals and beverages in a restaurant or catering setting | |||
Accommodation in hotels or other lodging facilities with additional amenities | |||
Rental of camping spaces with additional facilities | |||
Sales of art pieces such as paintings, prints, sculptures, and textiles | |||
Income from artistic pursuits | |||
Fees for admission to cultural, artistic, and entertainment venues | |||
Imported photographic prints signed by the artist with a limited-edition numbering. | |||
Sales of hard copy or electronic books, periodicals, brochures, and other similar products | |||
0% | Zero rated | ||
Goods and services that are exported outside the EU. | |||
Sales made to businesses in other EU countries, if the goods are taxable in the receiving country | |||
Work done on movable items that were bought or imported into Austria for the purpose of being worked on and later exported. | |||
Transport of goods across national borders | |||
Supplies of gold to central banks; | |||
Certain supplies of goods and services to diplomatic and consular missions and international organizations located in other EU Member States | |||
Financial and insurance services offered to customers who live outside the EU | |||
Certain services related to the transportation or export of goods, such as supplies for sea navigation and vessels, and supplies for aviation and aircraft carriers. | |||
Exempt From VAT |
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Financial transactions that meet specific criteria | |||
Revenue generated by businesses that meet specific criteria for being small-scale | |||
Services related to education | |||
Services related to education | |||
Income generated from events held for the purpose of fundraising | |||
Mailing services provided by postal operators; | |||
Childcare services, such as those offered by daytime nannies | |||
Services rendered by theaters, orchestras, and museums funded by the government, including entrance fees; | |||
Blood and organ donations; | |||
Sales of goods that were initially purchased with VAT by a supplier who cannot deduct it, but were later used to provide VAT-exempt services or goods (e.g., a doctor buying office furniture and then selling it without VAT because it was used for VAT-exempt services); | |||
Sales of immovable property, as discussed in Section 4.4 of the VAT Act; | |||
Transactions involving investment in gold. |
In response to COVID-19, various countries implemented temporary changes to their VAT rates. The most common adjustments were reductions in VAT rates on goods and services offered by businesses severely affected by the economic downturn resulting from the pandemic, with the hospitality sector being a prime example. For more information on the impact of COVID-19 on VAT in Austria visit our news section by clicking here.
If you wish to get informed about all VAT rates in Europe of VAT rates in the World you can view our dedicated page by clicking on the respective title.
Last Updated: 06/05/2022
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