Invoicing and Tax regulation in Austria

Navigating Austrian evolving e-invoicing and tax regulations can be challenging. This guide provides an overview of the latest requirements to help you stay compliant and avoid potential penalties.

In the guide, we will cover:

Regulations Timeline

Austria E-invoicing Requirements (2024 Updated)

Tax Regulations

Digital Reporting

Penalties

Achieving Global Invoicing and Tax Compliance with Space Invoices

 

 

Regulations Timeline

A quick overview of all current and upcoming regulations that Austria mandates regarding e-invoicing and digital reporting. For more details, check out the sections below.

 

Regulations in Effect:

Mandatory e-invoicing for B2G transactions,

Voluntary e-invoicing for B2B and B2C transactions.

 

Upcoming Changes to Austrian E-invoicing:

No upcoming regulations as of now.

 

 

E-invoicing Requirements Austria (2024 Updated)

In Austria, current regulations mandate e-invoicing for B2G transactions. B2C and B2B e-invoicing is optional for now, but many Austrian businesses have already adopted this technology. The benefits of e-invoicing include improved operational efficiency, faster payment processing, better compliance with tax regulations and significant cost savings, making it a better choice than traditional paper invoices.

To support this transition, Austria has implemented:

The PEPPOL network

Directive 2014/55/EU

A centralized platform known as e-Rechnung.gv.at.

 

Governmental Body Responsible for E-invoicing

The Austrian Federal Ministry of Finance (BMF) is responsible for e-invoicing regulations in Austria.

Click here to visit their official website.

 

E-invoicing Formats

In Austria, e-invoices are typically exchanged using the XML format, usually in either ebInterface or PEPPOL BIS Billing 3.0. Businesses connect to e-Rechnung.gv.at, facilitating the exchange of electronic invoices for B2G transactions and supporting Austria's commitment to streamlined and compliant digital invoicing.

 

E-invoice Requirements

Invoices must be issued immediately after the supply of goods or services, or within 6 months at the latest. They can be issued in either electronic or paper form and must include the following components:

Supplier Information: Name, address, and VAT identification number (if applicable).

Buyer Information: Name, address, and VAT number (for B2B and B2G transactions).

Unique Invoice Number;

Date of issuance;

Description of Goods/Services: Type, quantity, and details of goods or services provided;

Taxable Amount and VAT: Breakdown of net price, VAT rate(s), and total VAT amount;

Total Amount;

Payment Terms;

Digital Signature or Authentication (Optional).

 

Additional Information

Simplified e-invoices may be issued, which require less information than full invoices, but only if the total amount, including VAT, does not exceed €400.

Simplified Invoices Include:

 

E-invoice Archiving

E-invoices must be archived for a minimum of seven years.

 

 

Tax Regulations

Value Added Tax (VAT)

In Austria, the standard VAT rate is 20%. A reduced rate of 13% applies to items such as cultural events and hotel accommodation, while a second reduced rate of 10% is applied to essential goods and services such as food, books, newspapers. Additionally, a 0% tax rate is available for exports and certain intra-community supplies.

 

Corporate Tax

The standard corporate tax rate in Austria is 23%.

 

VAT on Digital Services in Austria

Digital services in Austria are generally subject to an 20% VAT. However, foreign companies selling digital services to Austrian consumers have some extra regulations:

EU-based businesses are required to register for VAT in Austria or opt for the EU's One-Stop Shop (OSS) scheme, if their annual turnover from these services exceeds €10,000.

Non-EU businesses may be required to appoint a fiscal representative in Austria and have no minimum threshold;

B2C Transactions: The VAT must be collected at the time of sale, it must be charged on the customer's location.

Digital services that are subject to VAT include e-books, software downloads, music, movies, games, and other electronically supplied services.

 

 

Digital Reporting

Portugal has already introduced several digital reporting requirements, with more to come:

B2G e-invoicing required;

B2B and B2C e-invoicing is voluntary;

Mandatory Use of Certified Cash Registers;

Businesses must submit tax returns electronically using the FinanzOnline platform.

 

VAT Registration and Thresholds

VAT registration threshold for domestically established businesses is €35,000.

For EU-based businesses engaged in distance selling of goods or services to Austrian consumers, the threshold is €10,000.

Non-EU businesses selling into Austria have no VAT registration threshold; they are required to register for VAT immediately upon beginning sales of goods or services to Austrian consumers.

 

VAT Returns and Payments

The reporting frequencies are as follows:

Monthly: Required for businesses with a turnover exceeding €100,000 in the previous year. VAT returns must be submitted by the 15th of the second month following the reporting period.

Quarterly: Required for businesses with a turnover between €30,000 and €100,000 in the previous year. These reports must be submitted by the 15th of the second month following the end of the quarter.

Annual: Businesses with a turnover below €30,000 may be exempt from periodic VAT returns but must submit an annual VAT return.

 

 

Penalties

A penalty of up to 10% of the VAT due for the late submission of a VAT return.

The late payment of VAT is subject to a penalty of 2% of the total payable VAT amount. A second penalty equivalent to 1% of the outstanding VAT is imposed if the VAT payment is not paid three months after the due date. A third penalty, equal to 1% of the outstanding VAT, is charged if the VAT is unpaid three months after the second penalty was issued.

 

 

Achieving Global Invoicing and Tax Compliance with Space Invoices

One way to comply with (e-)invoicing, tax, and reporting regulations in Austria is to use a provider like Space Invoices.

You will be able to:

Use one API for current and future global tax and invoicing compliance, including Austria

Save time and money with integration that takes less than a week

Support and upsell your clients worldwide, including Austria

Ensure all documents are archived and successfully reported to responsible institutions

Become a one-stop shop for current and future clients

Streamline processes and eliminate manual errors, saving time and money

Do you have questions about achieving compliance in Austria?

We are ready to help.

 

The information in this guide is strictly informative, as regulations and timelines change frequently. While we make every effort to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. This guide was last updated on December 9, 2024.

Looking to automate real-time reporting and tax compliance for Austria? Let's talk