Austria VAT Explained 2026: Rates, Exemptions & How to Calculate
Austria applies a standard VAT rate of 20% in 2026, reduced rates of 10% and 13%, and a new 4.9% super-reduced rate on selected basic foods effective 1 July 2026. Businesses with annual gross turnover up to €55,000 are VAT-exempt under the Kleinunternehmerregelung and neither charge output VAT nor deduct input VAT. All rates are sourced from USP/BMF and WKO official publications for 2026; this is informational guidance and does not substitute for professional tax advice.
Austria's VAT rates at a glance for 2026
Austria operates five VAT rate categories in 2026. Standard rate 20%: applies to all supplies not covered by a reduced-rate annex. First reduced rate 10%: covers most food (excluding Anlage 3 items from 1 July 2026), books, newspapers, magazines, residential rental, accommodation, passenger transport, and the food portion of restaurant services. Second reduced rate 13%: applies to cultural events and admissions, live animals, plants, firewood, and artworks on import or resale. Super-reduced rate 4.9% (from 1 July 2026): applies to selected basic foods defined in Anlage 3 of the Umsatzsteuergesetz 1994. Special territorial rate 19%: applies only within the municipalities of Jungholz (Tirol) and Mittelberg / Kleines Walsertal (Vorarlberg).
The new 4.9% super-reduced rate on basic foods from 1 July 2026
With effect from 1 July 2026, a super-reduced VAT rate of 4.9% applies under § 10 Abs. 1a UStG 1994 in conjunction with Anlage 3. The qualifying goods are milk and dairy products, butter, eggs, fresh fruit and vegetables, flour, and plain bread (fat content at most 5%, sugar content at most 5%). The exact product classifications are defined by CN (Combined Nomenclature) tariff positions listed in Anlage 3 and clarified in a BMF Fachinformation of March 2026. Transition rule: for goods delivered before 1 July 2026 that are credit-noted after that date, the original 10% rate applies. Restaurant and catering services remain at 10% even when prepared exclusively from Anlage 3 ingredients — the determining factor is the nature of the supply, not its components.
Calculating net amount, VAT, and gross price
Two directions of calculation apply. Net to gross: gross amount = net amount multiplied by (1 + VAT rate); VAT amount = gross minus net. Gross to net: net amount = gross amount divided by (1 + VAT rate); VAT amount = gross minus net. Practical shortcuts for the two most common rates: at 20%, the VAT embedded in a gross price is exactly one-sixth of that price (gross divided by 6). At 10%, the embedded VAT is exactly one-eleventh (gross divided by 11). For all other rates use: VAT = gross divided by (1 + rate), then multiplied by rate. All amounts are rounded to the nearest cent per transaction.
Kleinunternehmer VAT exemption for businesses under €55,000
Businesses whose annual gross turnover does not exceed €55,000 may apply the Kleinunternehmerregelung and issue invoices without output VAT. The trade-off is that input VAT on purchases cannot be deducted. A 10% tolerance applies in the calendar year the threshold is first exceeded — invoices during that year remain VAT-free provided the overrun does not exceed 10% of €55,000. From the following year onward, normal VAT obligations apply. Businesses may voluntarily opt into standard VAT registration (Regelbesteuerungsoption), which can be advantageous when input VAT on equipment or materials is substantial.
VAT returns, input tax, and special cases
Businesses subject to VAT file VAT advance returns (Umsatzsteuervoranmeldungen / UVA) monthly or quarterly via FinanzOnline, depending on annual turnover. An annual VAT return (Umsatzsteuerjahreserklärung) is also required. Input tax (Vorsteuer) — VAT paid on business purchases — is offset against output tax; only the net balance is remitted to or refunded by the tax authority. For mixed supplies covering multiple rate categories, each component is taxed at its own rate and may not be blended. Intra-EU supplies, imports, and reverse-charge services carry additional rules beyond the scope of this guide.
FAQ
What VAT rate applies to restaurant meals in Austria?
Food served at restaurants is taxed at 10% (first reduced rate). Beverages — including alcoholic drinks and soft drinks — are taxed at the standard 20% rate. This split applies regardless of whether the ingredients fall under the new 4.9% category: the super-reduced rate covers only retail supplies of qualifying Anlage 3 goods, not the catering service itself.
How do I extract the VAT from a gross price at the 20% standard rate?
Divide the gross price by 6. The result is the VAT amount embedded in the price; the net amount is five-sixths of the gross. For the 10% reduced rate, divide by 11 to get the embedded VAT. For other rates use: VAT = gross price divided by (1 + rate) then multiplied by rate.
Which goods qualify for the 4.9% super-reduced VAT rate from 1 July 2026?
The qualifying goods are defined by Anlage 3 of the UStG 1994 and confirmed in the BMF Fachinformation of March 2026: milk and dairy products, butter, eggs, fresh fruit and vegetables, flour, and plain bread with fat and sugar content each at most 5%. Processed foods, ready meals, and restaurant services do not qualify even if made from these ingredients.
Do I need to register for VAT if my turnover is below €55,000?
If your annual gross turnover is at or below €55,000, you are entitled to use the Kleinunternehmerregelung VAT exemption: no output VAT on invoices and no VAT returns required. However, you also cannot reclaim input VAT on purchases. If you expect significant input VAT (for example, on equipment or software), opting into standard VAT registration may be worthwhile. Always verify your specific situation with a tax adviser.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.