Austrian VAT – Value Added Tax

In Austria, the value-added tax (VAT, Mehrwertsteuer) system applies multiple tax rates to different products and services. The most important tax rates are the 20% standard tax rate, as well as the 10% and 13% reduced tax rates. In this article, we will review in which cases these reduced rates can be applied and what conditions apply to them.

Standard Tax Rate: 20%

The 20% standard tax rate applies to most products and services in Austria. This is the standard tax rate that is used by default, unless the law provides otherwise.

Preferential Tax Rates: 10% and 13%

10% Discounted Tax Rate:

Accommodation Service: Accommodation services in furnished living and sleeping areas, along with regularly accompanying ancillary services (e.g., heating), are subject to the 10% VAT rate. This applies to both hotel and private room rentals, but does not apply to conference room provisions, which are subject to the standard tax rate.

Camping Site Rentals: Camping site rentals are also subject to the 10% reduced VAT rate, provided that a uniform usage fee is charged for the recommended services.

Food and Other Products: The delivery, personal consumption, and import of food, ice cream, some beverages (e.g., water, milk, and milk-based drinks), as well as books and newspapers, are also subject to the 10% reduced VAT rate. Ancillary services, such as packaging and shipping costs, are also taxed at this rate.

Rental and Leasing of Residential Properties: The rental and leasing of residential properties, including operating costs, except for heating costs, are subject to the 10% reduced VAT rate. Renting out commercial spaces or garages is not included.

Passenger Transportation: Transportation of passengers by means of transportation, excluding air vehicles, is subject to a 10% reduced VAT rate if the main purpose is transporting people. Entertainment and sports services such as rafting or summer bobsled tracks are subject to the standard tax rate.

Waste Management: Waste management and sewage, as well as waste disposal, are subject to a 10% reduced VAT rate.

Hospital Revenues: Hospital revenues operated by non-public law entities or non-profit organizations are also subject to the 10% VAT rate.

Medications: The sale of medications (deliveries, community purchases, and imports) is subject to a reduced VAT rate of 10%. Medical devices, however, remain subject to the standard 20% VAT rate.

Repair Services: Repairs of bicycles, shoes, leather goods, clothing, and household textiles (e.g., bedding, tablecloths, pillowcases, or curtains) are subject to the 10% reduced VAT rate if the material cost portion of the repair is less than 50% of the total repair fee.

13% Preferential Tax Rate:

Live Animals and Plants: The transportation, personal consumption, and import of live animals (except horses not intended for slaughter), plants, firewood, animal feed, artworks, and antiques are subject to the 13% reduced VAT rate.

Artworks: The transportation of artworks falls under the 13% reduced VAT rate if the artist or their legal successor provides it, or an entrepreneur who is not a reseller provides it, or a reseller (art dealer) who has waived the margin taxation.

Cultural Sector: Theater and music performances, museum services, film and circus performances, radio enterprise services are subject to the 13% reduced VAT rate, provided they are not performed by administrative bodies or non-profit organizations.

Swimming Pools and Thermal Treatments: The revenues from swimming pools and thermal treatments, including sauna operations, are subject to the 13% reduced VAT rate.

• 20%: Standard tax rate – Applies to most goods and services
• 10%: Accommodation services – Hotels, guesthouses, private rooms (excluding conference rooms)
• 10%: Campsite rentals – Flat-rate usage fee required
• 10%: Food, frozen products, drinks – Excludes some items like water, milk, milk-based drinks
• 10%: Books and newspapers
• 10%: Residential and garage rentals – Excludes rentals with heating costs or commercial use
• 10%: Passenger transport – Excludes air travel and amusement/sports services
• 10%: Waste management – Includes sewage and waste disposal
• 10%: Hospital income – Only from public/nonprofit institutions
• 10%: Medicines – Those covered under pharmaceutical law
• 10%: Repair services – Includes bikes, shoes, leather, clothes, household textiles
• 10%: Live animals and plants – Excludes animals for slaughter
• 13%: Firewood, pet food
• 13%: Artworks and antiques – If sold by creator or legal successor, or under special VAT rules
• 13%: Cultural sector – Theatre, music, museums, film, circus, radio enterprises
• 13%: Swimming pools and thermal treatments – Includes saunas