VAT in Austria (Umsatzsteuer) (2026)

What Are All the VAT Rates in Austria at a Glance?

Rates as of September 2026. Verify an individual product against the BMF rate list before you invoice it.

What Does the Standard 20% VAT Rate Apply To?

The standard VAT rate in Austria is 20% (separate from income tax, which is withheld from salaries). It applies to the majority of goods and services, including electronics, clothing, furniture, professional services, and most retail items. When you see a price in an Austrian shop, VAT is already included (Brutto price). On invoices, businesses are required to show the net amount (Netto) and the VAT separately.

What Goods and Services Are Taxed at the Reduced 10% Rate?

A reduced rate of 10% applies to essential goods and services that are considered part of everyday life. Since 1 July 2026 the staple-food part of this list sits one band lower, at 4.9%. What stays at 10%:

• Food that is not classed as a staple, and food served to you
• Books, newspapers, and magazines (print and digital)
• Public transport (buses, trams, trains, metro)
• Pharmaceutical products and medical devices
• Residential rent
• Waste collection and sewage services

What Is Taxed at the 13% VAT Rate in Austria?

The 13% rate applies to a specific set of goods and services that fall between the essential and standard categories:

• Accommodation (hotels, guesthouses, Airbnb)
• Admission to cultural events (concerts, theatre, museums)
• Admission to sporting events
• Live plants, flowers, and firewood
• Wine directly from the producer (Ab-Hof-Verkauf)
• Film screenings (cinema)

What Is the New 4.9% Rate on Staple Foods?

Staple foods (Grundnahrungsmittel) carry a VAT rate of 4.9% since 1 July 2026, down from the 10% reduced rate that applied to all food before. The cut is permanent rather than a temporary relief measure, so it does not carry an expiry date the way the electricity levy reduction does. It is the first new VAT band Austria has introduced in years, and it sits below all three existing reduced rates.

For shoppers the change shows up in the receipt's VAT summary rather than in a separate line. For anyone invoicing food, it means a fourth rate to get right: 4.9% for staples, 10% for other food and for food served in a restaurant, 13% for wine sold directly by the producer, and 20% for alcoholic drinks. Check the BMF rate list for the product you sell before applying the lower band, because the definition of a staple decides the rate, not the shelf it sits on.

How Does the Small Business VAT Exemption (Kleinunternehmerregelung) Work?

If your annual turnover stays under €55,000, you can use the small business exemption under § 6 Abs. 1 Z 27 UStG. You charge no VAT on your invoices and file no VAT returns, and in exchange you cannot claim input VAT (Vorsteuer) on anything you buy. The threshold rose from €35,000 net to €55,000 on 1 January 2025 and is unchanged for 2026. Going over it once by up to 10% is harmless under the tolerance rule; a second breach pulls you into the standard system. This regime is particularly popular among freelancers and small businesses starting out in Austria. For official guidance, consult the BMF or WKO websites.

Since 2025 the exemption also works across borders: the EU-wide small business scheme lets you stay VAT-free on sales into other member states up to their own thresholds, instead of registering there. Be careful with one detail: the €55,000 exemption covers VAT only. Income tax runs on the same profit regardless, so a Kleinunternehmer still files an income tax return.

You can voluntarily opt into the standard VAT system if it benefits you, for instance, if your business expenses have significant VAT that you would like to reclaim. Once you opt in, you are bound for at least 5 years.

When Do You Have to File a VAT Return in Austria?

If you charge VAT, you file a Umsatzsteuervoranmeldung (UVA) through FinanzOnline and pay at the same time. The default cycle is quarterly, due on the 15th of the second month after the quarter ends, so the first quarter falls due on 15 May. Businesses whose VAT in the previous year exceeded €100,000 file monthly instead.

The annual return (form U1) is due by 30 April on paper or 30 June through FinanzOnline, in the year after the tax year, with the same 31 March extension of the year after that if a Steuerberater files under the Quotenregelung. VAT you paid in another EU country comes back through the electronic refund procedure (§ 21 UStG), applied for in FinanzOnline by 30 September of the following year. Miss a payment by more than 3 days and a late-payment surcharge of 2% applies (§ 217 BAO).

How Is VAT Applied to Food and Dining in Austria?

An important distinction: staple groceries bought in a supermarket are taxed at 4.9% since 1 July 2026, other groceries at 10%, while food served in restaurants and cafes stays at 10% for the food itself and 20% for alcoholic drinks. Non-alcoholic drinks remain at 10%, and takeaway food is generally 10% as well. This split can appear confusing on restaurant receipts, where you may see two or three VAT lines on one bill. For a full breakdown of everyday expenses, see our cost of living guide.

How Much VAT Refund Do Non-EU Visitors Actually Get?

Visitors who live outside the EU can reclaim Austrian VAT on goods they take home in their luggage. The receipt must exceed €75 per shop and day, and the goods must leave the EU within 3 months. The nominal VAT share of a 20% price is 16.7%, but refund operators keep a commission, so the real payout lands at about 12% to 14% of the price.

Validation happens at the last EU exit point, not where you shopped. On a Vienna to Paris to Singapore trip you validate in Paris. Vienna Airport has used fully digital export validation (DEV) since 2021: kiosks in Terminals 1 and 3 before check-in for checked bags, and counters after passport control for hand luggage. Cash payouts at the airport usually carry a higher fee than a refund to a credit card.

Austrian residents can only claim a tourist VAT refund outside the EU, and not everywhere: the UK abolished its tourist VAT refund on 1 January 2021, so shopping in London no longer pays anything back. Coming home from a non-EU country, you may bring goods worth €430 by air or sea and €300 by land free of duty, €175 for children under 15, and cash of €10,000 or more must be declared to customs.

What Law Sets the Rates and What Are You Entitled To?