Tax & Financial Insights
Stay informed about Austrian tax regulations, business matters and financial developments with practical insights from TAX AUSTRIA.
VAT
VAT
Agricultural Side Activities and the Small‑Business Turnover Threshold
From 1 January 2025 the turnover threshold for applying the small‑business exemption was raised from EUR 35,000 net to EUR 55,000 gross. The change also affects agricultural and forestry operators with side activities.
VAT
Turnover threshold for small‑business traders
From 1 January 2025 the turnover threshold for small‑business traders was increased from EUR 35,000 net to EUR 55,000 gross per year. For the calculation of this threshold it is not the receipt of the payment that matters, but when the relevant service was performed.
VAT
Incorrect VAT Advance Returns
Submitting incorrect VAT advance returns (UVA) constitutes tax evasion even if a correct VAT annual return should later have been filed.
VAT
Income Tax Basic Flat-Rate Deduction and Input Tax Flat-Rate Deduction
At the end of June the Federal Council also gave the green light to the 2025 Budget Supplementary Act, which will bring comprehensive changes to the basic flat-rate deduction for income tax (ESt) and to the input tax flat-rate deduction in 2025 and 2026.
VAT
Fake invoices: No input tax deduction for the invoice recipient
If invoices show VAT even though no services have been provided, they are considered fake invoices. The VAT shown on such fake invoices must be paid by the issuer, while the invoice recipient is not entitled to an input tax deduction.
VAT
No VAT liability on reimbursement of training costs?
If an employment relationship is terminated by the employee, they may be obliged to repay training costs. This reimbursement no longer has to be treated as subject to VAT.
VAT
Annual Bonuses, Discounts & Co
Especially in the trade sector, annual bonuses, discounts and other price reductions are common marketing tools that companies receive from their suppliers. These price reductions must be treated correctly for VAT and special aspects need to be observed.
VAT
Input Tax Deduction on Invoices Without VAT Indication
If a foreign entrepreneur fails to register for VAT in Austria and does not show VAT on its invoices, it still owes VAT in Austria.
VAT
Major repairs in a VAT‑exempt disposal of a building
To avoid disputes with the tax office over input tax that must be corrected, you should promptly document renovations in the building sector and clarify in advance whether they constitute a major repair.
VAT
Reporting obligation for agricultural and forestry side activities
Agricultural and forestry operators may carry out a range of self‑employed "additional activities" in connection with their farming business, for which they do not need a trade licence within certain limits. Operators who carry out such agricultural and forestry side activities must report their annual gross income (including VAT and without deduction of expenses) to the Social Insurance Institution for the Self‑Employed (SVS) by no later than 30 April 2025.
VAT
Medical Centre: Rental or Comprehensive Service Package?
Anyone wishing to practise as a doctor in a medical centre may, in certain cases, choose between using the premises on the basis of a rental agreement or taking a full service package. The distinction has VAT consequences.
VAT
VAT on hotel guest cancellations
If hotel rooms are cancelled at short notice or not used, guests often still have to pay for the room or pay cancellation fees. Tourism operators must observe the VAT consequences of such charges.
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