Assessment procedures

Foreign companies generating turnover in Austria may also be required to register with the tax office.

Assessment obligation

Also enterprises that 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, but generate turnover taxable in Austria are basically obliged to register with the Graz-Stadt tax office and to submit preliminary VAT returns and annual VAT returns. However, it is not necessary to register for VAT 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 (i.e. Reverse Charge) or which can be declared via the One-Stop-Shop. Furthermore, foreign enterprises 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
• they 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 in order to claim input tax. An assessment is not available upon request where the requirements for the input tax refund procedure apply.

The date on which the service was carried out is relevant as regards the question of whether the enterprise is a foreign enterprise.

Enterprises that own a property located in Austria and rent it out subject to tax only establish a permanent establishment with this property if they have their own personnel in the country or at the property for the provision of services in connection with the rental that are capable of acting autonomously. Since 20 July 2022, an exception to the transfer of tax liability has been provided by law for the rental of real estate. The turnover must be declared in the assessment procedure pursuant to section 20 paragraph 1 UStG 1994 (see also for the previous legal situation UStR Rz 2601b (→ BMF)).

Issuing a 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 obtain a tax number and a VAT registration number, the following forms – completed in full – will be required:

• Questionnaire on the issue of a tax number/VAT registration number (Procedure19)
  Important: 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 enterprise

Preliminary VAT return and annual VAT return

In principle, foreign enterprises which are assessed in Austria must submit preliminary VAT returns during the calendar year.

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 the tax number of the foreign enterprise 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.

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.

Legal bases

Sections 11 and 19 of the Umsatzsteuergesetz

Forms

• VAT return – U1^{German text}
• Preliminary VAT return – U30^{German text}
• Questionnaire on the issue of a tax number for entrepreneurs whose registered office or establishment is not based in Austria – Procedure19^{German text}
• Specimen signature sheet – Procedure26^{German text}