VAT return/Preliminary VAT return

General information

Enterprises that are not exempt from Value Added Tax (VAT) as small businesses must submit regular preliminary VAT returns in the current financial year. In doing so, they make advance payments to the tax office. These advance payments are later summarized in the VAT return and offset against the VAT liability.

Enterprises must calculate and pay VAT to the tax office themselves during the calendar year. This is done by submitting the monthly or quarterly preliminary VAT return (UVA).

The preliminary return period is generally the calendar month. The preliminary return period is the period for which enterprises must calculate VAT themselves, prepare a VAT preliminary return and pay any resulting advance payment.

If the previous year's turnover was no more than 100,000 Euro, the preliminary return period is the respective calendar quarter. Enterprises whose turnover exceeded 100,000 Euro in the previous calendar year are obliged to submit monthly preliminary VAT returns. Enterprises may also voluntarily choose the monthly preliminary return period. The decision is binding in each case for one calendar year.

Depending on whether the VAT amounts or the input tax amounts predominate in the preliminary return period, this results in a payment debit or a credit note. A payment debit must be paid at the latest on the due date, which is also the deadline for submitting the preliminary VAT return.

After the end of the assessment period, the VAT assessment is made by submitting the annual VAT return. As part of the assessment, the total of all payments or credits already made is compared with the amount shown in the VAT return. Ideally, the values should coincide, i.e. the annual VAT return is only a summary of the monthly or quarterly advance VAT returns. If the assessment results in an additional claim, this means that the advance payments made during the year were too low. An additional payment may result in a so-called "late payment surcharge" if it is not paid on time.

The decision on VAT assessment is issued in writing. An assessed VAT debt must be paid within one month of the date on which the decision is delivered. Anyone who does not agree with the VAT assessment decision can lodge an appeal with the responsible tax office within one month.

Enterprises affected

Enterprises who provide deliveries subject to VAT and other services to customers and whose annual turnover exceeds 55,000 Euro are, in principle, obliged to file VAT returns.

The assessment period is generally the calendar year. Under certain circumstances, a different fiscal year may be chosen as the assessment period instead of the calendar year if the company also determines its profit for income tax purposes according to a different fiscal year. However, this is only possible if the company is subject to debit taxation, the preliminary reporting period is the calendar month and the fiscal year ends with the end of a calendar month. Furthermore, the company must declare in writing to the tax office that a different fiscal year is to be used. An informal letter is sufficient for this purpose (see section 20 UStG as well as Rz 2682 ff of the UStR).

Requirements

The following transactions are subject to VAT:

• Deliveries and other services (e.g. freelance activities, tradesperson services, but also renting, leasing and assignment of licences), which are carried out by an entrepreneur domestically in return for payment as part of their business
• Self-supply
• Importing goods from a third country into Austria
• Intra-Community acquisitions

Apart from the circumstances mentioned, tax liability can also arise as a result of an incorrect or unauthorised margin scheme.

Not all transactions subject to the UStG are taxable. The law includes a number of tax exemptions. The tax exemption for small business owners is particularly significant.

Deadlines

Preliminary VAT return

Enterprises must submit the preliminary VAT return (UVA) no later than the 15th (due date) of the second following calendar month (for quarterly preliminary return periods by 15 May, 15 August, 15 November and 15 February). If a payment is due, you must pay this by the due date at the latest.

Annual VAT return

VAT returns are to be filed no later than 30 April of the following year or no later than 30 June of the following year for returns filed electronically via FinanzOnline.

In individual cases, the deadline for submission of tax returns can be extended upon reasoned request. Anyone making use of a ‘tax representative’ is usually given longer to file the tax return.

Competent authority

In principle, the Tax Authority Austria (→ BMF)^{German text}, provided that the Tax Authority for Large Traders is not responsible

Procedure

Please note that you are, in principle, obliged to submit the VAT return electronically via FinanzOnline. Where it is not feasible to submit the VAT return electronically due to a lack of electronic provisions (e.g. no internet connection), the official form (U1) must be used. When submitting the preliminary returns via a ‘tax representative’, the technical requirements relating to the representative shall apply.

Required documents

No specific documents have to be submitted.

Costs and fees

There are no notification costs (application, e.g.). No costs are incurred in filing the VAT return.

Further information

Where it is not compulsory to enter data via FinanzOnline (→ BMF)^{German text} all the necessary forms are available in the Federal Ministry of Finance's VAT form overview (→ BMF)^{German text} or from all the tax offices.

Further links

Deadlines and payment due dates (→ BMF)^{German text}

Legal bases

• Taxable sales: section 1 of the Umsatzsteuergesetz (UStG)
• Tax exemptions: section 6 of the UStG
• Small companies: section 6 paragraph 1 (27) of the UStG
• Assessment period and individual taxation: section 20 of the UStG
• VAT assessment: section 21 paragraph 4 of the UStG
• Exemption from the obligation to submit a VAT return: section 21 paragraph 6 of the UStG
• Deadlines: section 134 paragraph 1 of the Bundesabgabenordnung (BAO)
• Deadline extension: section 134 paragraph 2 of the BAO
• Due date and payment: section 210 paragraph 4 of the BAO

Expert information

Umsatzsteuerrichtlinien 2000 (→ BMF)

Link to form

• VAT return – U1
• VAT return – Instructions on how to complete the form – U1a
• FinanzOnline
  Entrepreneurs registered on the business service portal (USP) are able to use this and many other online procedures with a single sign-in to the USP. More detailed information about registering with the USP can be obtained from the online advisor for USP registration.