Foreign entrepreneurs generating turnover in Austria, with this not resulting in a transfer of tax liability, are obliged to register with the Graz-Stadt tax office.
Entrepreneurs who at the time at which the service was provided, are not domiciled (registered office) in Austria, and are not ordinarily resident or do not have an establishment involved in the provision of the service in Austria (referred to hereinafter as foreign entrepreneurs) and who generate turnover in Austria in respect of which tax liability cannot be transferred (i.e. in particular domestic deliveries, other services to private individuals), are obliged to register with the Graz-Stadt tax office and to file preliminary VAT returns and annual VAT declarations.
Exemptions from the registration/assessment obligation upon request
Where a foreign entrepreneur has not generated turnover domestically (Austria) or has only generated turnover in respect of which the tax liability passes to the recipient of the service, they are not obliged to file a VAT return and no assessment shall be made, where
- they are liable to pay tax themselves as a recipient of a service (reverse charge system) in accordance with section 19 paragraph 1 of the UStG and in the case of construction works in accordance with section 19 paragraph 1a of the UStG and are entitled to full tax deduction with regard to the VAT transferred to them and
- they are not liable to pay any tax based on invoicing pursuant to section 11 paragraph 12 and 14 of the UStG.
Where further, additional input tax is claimed in addition to the input tax for the transferred tax liability, this must take place by way of an assessment procedure.
A foreign entrepreneur does, however, have the option of explicitly requesting an assessment. An assessment is not available upon request where the requirements for the input tax refund procedure apply.
Issuing a tax number – VAT registration number
Where an assessment is made, a tax number must be requested from the Graz-Stadt tax office prior to the first submission of a preliminary VAT return.
In order to issue a tax number and a VAT registration number, the Graz-Stadt tax office will require the following forms, completed in full:
- Questionnaire on the issue of a tax number/VAT registration number (Procedure19). From this point on, this tax number must be indicated on all correspondence directed to the tax office. This information makes it easier to identify the applicant and can therefore accelerate the procedure.
- Original copy of the specimen signature sheet for corporations (Procedure26).
- Copy of the excerpt from the commercial register and/or articles of association for corporations.
- Original proof of registration as an entrepreneur (U70).
Preliminary VAT return
In principle, foreign entrepreneurs who are assessed in Austria must submit preliminary VAT returns during the calendar year.
- Preliminary VAT returns must be sent to the Graz-Stadt tax office electronically. Where it is not feasible for the entrepreneur to submit the advance return electronically due to a lack of electronic provisions, the advance return must be made using the official form (U30).
- The obligation to file a preliminary VAT return shall not apply
- where, in the case of a tax charge (i.e. the VAT to be paid exceeds the tax to be deducted) the tax amount is paid on time and in full under its tax number to the account of the Graz-Stadt tax office, or
- where no advance payment is made for an advance return period
- and turnover did not exceed 35,000 Euro in the previous calendar year.
Where the previous year’s turnover is more than 100,000 Euro the entrepreneur is obliged to submit preliminary VAT returns on a monthly basis.
For calendar months in which turnover was generated or in respect of which input tax is claimed, an advance return or internal advance return must be completed no later than on the 15th day of the second subsequent calendar month (i.e. 15 March for January´s sales).
Entrepreneurs whose turnover in the previous calendar year exceeded 35,000 Euro can submit an advance return on 15 May, 15 August, 15 November and 15 February for the previous calendar quarter (January to March, April to June, etc.).
At the end of the calendar year, a VAT return must be submitted using Form (U1) by no later than 30 April of the following year. The deadline for VAT returns submitted electronically is 30 June of the following year.
The date on which the service was carried out is relevant as regards the question of whether the entrepreneur is a foreign entrepreneur. Entrepreneurs who own property in Austria and are liable to pay tax on rent must be deemed to be domestic entrepreneurs in this respect. This turnover must be declared in the assessment procedure. The recipient of the service is not liable to pay tax on this turnover. In these cases, the tax office in whose jurisdiction the property is located is competent.
- VAT return – U1German text
- Preliminary VAT return – U30German text
- Proof of registration as an entrepreneur entitled to input tax – Input tax refund procedure – U70German text
- Questionnaire on the issue of a tax number for entrepreneurs whose registered office or establishment is not based in Austria – Procedure19German text
- Specimen signature sheet – Procedure26German text
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