Import/Intra-Community acquisitions
Import refers to the import of goods from a third country into the EU, while intra-Community acquisition refers to the acquisition by an enterprise of goods from another EU Member State.
Import VAT
General information
Anyone (including private individuals) who imports goods from a third country into Austria must pay import VAT. The basis of assessment for import VAT is generally the customs value. It is an import duty that is generally levied by the customs authority.
Enterprises can either pay the import VAT to the customs office and then, provided that all requirements are met, deduct it again via the preliminary VAT return (UVA) or pay it monthly into the tax account set up at the tax office. The second option requires that the enterprise is registered for VAT in Austria and imports goods for business purposes.
In addition, the enterprise must already declare in the customs declaration for release for free circulation that it will make use of this regulation.
Please note
Enterprises can deduct the import VAT paid to the customs office or booked to the tax office account for goods imported for the enterprise as input tax if the legal requirements are met.
Legal bases
Sections 1, 12, 26 of the Umsatzsteuergesetz (UStG)
Intra-Community acquisitions
General information
Intra-Community acquisitions are treated in the same way as intra-Community deliveries. Intra-Community acquisitions are when goods are brought into the country from an EU Member State for business purposes. If an Austrian entrepreneur purchases items for their business in the Community territory, the Austrian entrepreneur will disclose their VAT Identification Number. This means that the business partner is able to make sales without having to pay VAT. This constitutes a tax-free intra-Community delivery from the business partner's perspective. By contrast, the Austrian entrepreneur is making an intra-Community acquisition and must pay tax.
The items purchased are subject to VAT (20 per cent), but usually only in the entrepreneur’s accounts. Where entrepreneurs are entitled to input tax deduction, entrepreneurs can deduct the calculated VAT as input tax in the same preliminary VAT return. In this case, the whole procedure only takes place on paper; no payments have to be made.
Example
A German wholesaler supplies stereo systems to an Austrian retailer. This delivery is not subject to taxation in Germany; however, in Austria it is subject to VAT at 20 per cent ("acquisition tax"). The Austrian retailer is able to deduct this acquisition tax as input tax where it is entitled to do so.
The place of the intra-Community acquisition and therefore the taxation must generally be where the item is located following transportation or shipment.
Tax liability arises when the invoice is created, but no later than on the 15th day of the calendar month following the purchase. Different rules apply when it comes to intra-Community acquisitions of new vehicles.
Please note
In some cases (article 1 paragraph 4 of the UStG), such as, for example, for intra-Community acquisitions by non-genuinely exempted entrepreneurs, taxation on intra-Community acquisitions is associated with the purchasing limit of 11,000 Euro. Details of this can be found in the Umsatzsteuerrichtlinien 2000.
Further links
Vehicle importation (→ BMF)German text
Legal bases
- VAT liability for intra-Community acquisitions: article 1 paragraph 1 of the Umsatzsteuergesetz 1994 – Anhang (Binnenmarkt) (UStG)
- Input tax deduction for intra-Community acquisitions: article 12 paragraph 1 (1) of the Anhang (Binnenmarkt) zum UStG
- Incurrence of tax liability: article 19 of the Anhang (Binnenmarkt) zum UStG
- Umsatzsteuerrichtlinien 2000 (UStR 2000)
Responsible for the content: Federal Ministry of Finance
