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Taxation in Austria

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Taxation in Austria

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Taxation in Austria

Income Tax

Individual Income Tax in Euros:

€ 0 - 11,000 0%

€ 11,000 - 25,000 36.5%

€ 25,000 - 60,000 43.21%

€ 60,000 and more 50%

Corporate Tax

  • Corporate Tax: 25%.
  • Capital Gains: 25%.
  • V.A.T: 20%.There is a reduced V.A.T rate of 10%.

 

VAT between member states of the European Union is based on the "Destination Principle". The general rate is 20% for most manufactured goods and services. The reduced rate is 6% - 12%  A lower rate of 10% is levied on food, agricultural products, property rents, and some other items. A special tax is levied on the first registration of cars. This is based on the car's average fuel consumption.

The exporter will need to obtain the VAT registration number of their customer and quote it on their sales invoice along with their own VAT registration number. The UK exporter will zero rate the goods and the importer in Austria will declare the goods on their VAT return form. These returns are used by Customs to carry out spot checks on exporters in the UK for origination of goods. However, if the buyer is not registered for VAT or the seller cannot obtain his VAT number then the seller must charge the UK rate of VAT. The national code for VAT in Austria is ATU, the format is 9 digits including the U prefix, eg (AT)U13245857

Anyone wishing to establish a business or profession in Austria has to be registered by a local tax office

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