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Free deliveries and other services

The following transactions are usually liable for VAT as personal use:

Personal use transactions in the field of deliveries

  • The withdrawal or use of goods forming part of the assets of the business by the entrepreneur for purposes external to the company or
  • the withdrawal or use of goods forming part of the assets of the business by the entrepreneur for the needs of their employees (staff) or
  • the withdrawal or use of goods forming part of the assets of the business by the entrepreneur for all other unpaid uses, with the exception of low-value gifts and samples for business purposes.

Caution

In general, these rules also apply to entrepreneurs from EU Member States in Austria.

It should be noted that personal use is only taxed where the purchase of the item in question or its component parts is eligible for full or partial input tax deduction.

Personal use transactions in the field of other services

In the case of personal use of other services, a distinction must be made when it comes to the input tax deduction.

Personal use

Use of goods forming part of the assets of a business, which are eligible for full or partial tax deduction, is liable for personal use taxation, where use

  • is for purposes external to the company or
  • for staff needs, where these are not gifts.

Personal use of services

Irrespective of input tax deduction, free provision of other services by the entrepreneur is equated with the provision of other services and is subject to personal use taxation, where these services:

  • are carried out for purposes external to the company or
  • are carried out for the needs of their staff, where these are not gifts.

Example

An electrical retailer removes a television set from his warehouse and now uses it in his private household. A lecturer also uses his PC, for which he has claimed a full input tax deduction, for private purposes.

Legal basis

Sections 3 and 3a of the Umsatzsteuergesetz (UStG)

Translated by the European Commission
last update: 1 January 2021

responsible for content: Federal Ministry of Finance

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