In this period, Amber Accounting firm will share with you the following content:
1. What is Austrian VAT?
2. What situation needs Austrian VAT?
3. What will happen if you have the obligation to register?
4. Austrian standard tax rate and declaration cycle
5. Austrian VAT declaration and tax payment deadline
6. What are the common fines for Austrian VAT?
What is an Austrian VAT?
VAT is short for Value Added Tax (VAT), a value-added tax widely used in EU countries, which refers to the profit tax on the selling price of goods. The goods are subject to import duty when they enter Austria (in accordance with EU legislation); After the goods are sold, the merchants can return the import VAT (IMPROT VAT) and pay the corresponding SALES VAT based on the sales volume.
What is the need for Austrian VAT?
1. The company was established in Austria, with annual sales exceeding 30,000 Euros;
2. The company is established outside Austria and stores its products in Austria and sells to local buyers in Austria.
[Above 2 points meet any one must be registered!]
Starting from 2021-7-1, products sold from other EU warehouses and shipped to Austrian buyers do not need to register Austrian VAT. Amazon will withhold and pay the tax of this part. It only needs to declare in the registered tax number of the country where the goods are stored.
What happens if you have an obligation to register?
According to the requirements of the Austrian Digital Tax Act 2020, all platforms will bear the joint and several responsibility to supervise the VAT compliance of users on the platform. If the sellers have VAT fraud, the platforms shall promptly stop it, and they are required to regularly share the sales data of the sellers' background with the Austrian Tax Office, and timely feedback these sales data to the Austrian Tax Office. If there is an error with the tax bureau's data, the seller's store will be immediately revoked by the platform.
Therefore, if you have the obligation to pay the VAT in Austria but fail to upload the VAT number to the seller platform of Amazon in time, your store will be taken compulsory measures, and your sales authority will be limited, and even related to stores in other countries, you will be audited and required to upload the VAT number.
Austrian standard tax rate and declaration cycle
Austrian tax rates are divided into normal (standard) and special rates.
Import and export related business tax rates mainly include:
Normal tax rate: 20%;
Reduced tax rate: 10%;
Increase tax rate: 32%。
Austrian VAT declaration and tax payment deadline
Deadline for declaration: 15th of the second month. For example, the deadline for sales declaration in May is 15th of July.
Tax payment deadline: the 15th day of the second month. For example, the VAT payment deadline of May is July 15th.
The annual VAT return (the annual report) can be submitted online or by paper mail.
The deadline for online submissions is June 30 of next year,
The deadline for paper mail submissions is April 30 of the following year.
What are the common penalties for Austrian VAT?
1. Late filing: If you fail to file on time, you will incur a penalty of up to 10% of the declared VAT tax (taxes less than 50 euros will not be incurred), which has nothing to do with late payment.
2. Overdue Tax payment:
If the enterprise has a VAT tax of more than 50 euros in the current/current quarter and does not pay the tax to the tax office before the payment deadline, the Austrian Tax Office will charge the enterprise three late fees according to the circumstances.
How to pay taxes in Austria?
VAT payment in Austria is similar to that in the UK and Germany, either through the tax agent or by oneself directly.
You can pay by P card, pingpong, Wanli Hui WF, etc. Lianlian Payment does not support the payment of VAT in Austria for now.
Austria can also pay its own taxes to the tax Board bank account, which is as follows:
Bank Name：BAWAG P.S.K
IBAN：AT120100000005534681
BIG：BUNDATWW
DVR：0009687
Can Austrian VAT register itself?
In general, Amb does not recommend that sellers register for VAT independently.
Most European countries are strict about VAT. If the seller does not have a tax agent to handle tax issues on his behalf, there will be more account security risks.
Having a professional tax agent can deal with many potential tax risks for the seller. In the VAT declaration cycle, it will remind the seller to declare and pay the VAT in advance, and put forward tax avoidance suggestions according to the situation of the seller, so as to reduce the operating cost for the seller.