Input tax consolidation

As well as business expense consolidation, enterprises are also entitled to make use of input tax consolidation or to waive the average percentages for income tax and only to apply the VAT consolidation method. The two procedures are independent of each other and may be chosen separately in each case. VAT consolidation, however, relates exclusively to the determination of deductible input tax.

Please note

These rules also apply to entrepreneurs from EU Member States or third countries in Austria.

When calculating the VAT for deliveries, other services and personal use transactions, the tax due must, by contrast, be recognised in the actual amount. In accordance with basic global income accounting, basic global accountingGerman text also applies to VAT. In addition, section 14 paragraph 1 (2) of the UStG includes separate delegated legislation for input tax consolidation in the area of VAT. Although a Regulation in this regard entered into force as far back as on 14 December 1983 (BGBl. No 627/1983) within the scope of the UStG 1972, this must still be applied and includes a list of percentages for determining the input tax amounts to be deducted for particular groups of entrepreneurs (Sector consolidation of VATGerman text). Additional input tax consolidations for specific sectorsGerman text also apply.

Legal basis

Section 14 of the Umsatzsteuergesetz (UStG)

Translated by the European Commission
Last update: 1 January 2021

Responsible for the content: Federal Ministry of Finance

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