Key Highlights

  • 20% standard VAT rate: VAT on imported goods in Austria is charged at 20% on most imported goods from non-EU countries, with reduced rates of 13% and 10% for specific categories  
  • EU goods exempt: Goods from other EU member states are not subject to import VAT; intra-community acquisition rules apply instead 
  • IOSS available for low-value goods: The Import One-Stop Shop allows distance sellers to collect and remit VAT on goods up to €150, eliminating import VAT at customs
  • Postponed accounting available: VAT-registered Austrian businesses can defer import VAT payment through postponed accounting, improving cash flow

Understanding import taxation is essential for businesses and individuals importing goods into Austria from outside the European Union. Import VAT applies to non-EU goods, while trade within the EU follows intra-community VAT rules. Since joining the EU in 1995, Austria’s import VAT system has aligned with EU directives and is administered by Austrian Customs and the Federal Ministry of Finance. The standard 20% VAT rate has a direct impact on import costs and cash flow.

Import VAT is calculated on the customs value plus any customs duty and related charges, increasing the total landed cost. For VAT-registered businesses, this tax is generally recoverable as input VAT, making it a cash-flow consideration rather than a final expense. Understanding EU rules, IOSS, deferment options, and compliance requirements helps businesses reduce risk, avoid delays, and manage imports efficiently.

What Is Import VAT in Austria?

Import VAT in Austria (Umsatzsteuer) is charged on goods imported from countries outside the European Union. As an EU member, Austria follows harmonized EU VAT rules for imports while administering the system on a national level.

Austrian Customs collects import VAT at the point of import before goods are released into free circulation. It applies to commercial imports, personal purchases, gifts, and non-EU e-commerce. Goods moving between EU member states are not subject to import VAT and are instead reported through VAT returns.

For VAT-registered businesses, import VAT is generally recoverable as input tax when goods are used for taxable activities. For non-registered importers, it is a final cost, similar to VAT on domestic purchases.

When Does Import VAT Apply in Austria?

Import VAT applies to goods entering Austria from non-EU countries, with specific rules determining when and how the tax is charged.

  • Imports from Non-EU Countries: All goods imported from countries outside the EU (including the United States, China, the United Kingdom post-Brexit, Switzerland, Norway outside the customs union) attract import VAT unless specifically exempted. This includes commercial shipments, online purchases, gifts, and personal imports.
  • EU Intra-Community Acquisitions: Goods acquired from other EU member states are NOT subject to import VAT. Instead, VAT-registered businesses account for these through reverse charge mechanisms in their VAT returns. Non-registered persons pay VAT to the EU supplier. This fundamental distinction means import VAT only applies to non-EU imports.
  • Commercial Imports: All goods imported for business purposes from non-EU countries attract import VAT at applicable rates. This includes raw materials, components, finished products, capital equipment, and inventory for resale.
  • Personal Imports and Online Purchases: Individuals importing goods for personal use from non-EU countries face import VAT. This commonly affects purchases from U.S., UK, or Chinese online retailers. Couriers collect import VAT before delivery.
  • Small Consignments: Gifts between private persons not exceeding €45 in value may qualify for exemption, though this is limited and subject to verification that the transaction is genuinely non-commercial.

How Import Duty and VAT Are Calculated

Austria follows EU customs valuation rules and VAT calculation methodologies.

Basic Calculation Formula

Import VAT is calculated on the customs value, inclusive of any applicable customs duty:

  1. Customs Value: CIF (Cost, Insurance, Freight) value in foreign currency converted to EUR
  2. Customs Duty: Calculated asa  percentage of customs value per EU Common Customs Tariff (TARIC)
  3. Other Charges: Any additional import-related charges included in the VAT base
  4. VAT Taxable Amount: Customs Value + Customs Duty + Other Charges
  5. Import VAT: VAT Taxable Amount × Applicable VAT Rate (20%, 13%, or 10%)

Step-by-Step Calculation

Step 1: Determine Customs Value (CIF) 

Customs Value = FOB Value + Freight + Insurance

Step 2: Calculate Customs Duty (if applicable) 

Customs Duty = Customs Value × EU Tariff Rate

Step 3: Determine VAT Taxable Amount VAT 

Taxable Amount = Customs Value + Customs Duty

Step 4: Calculate Import VAT 

VAT tax on Imports in Austria = VAT Taxable Amount × VAT Rate

Numerical Example

An Austrian company imports machinery from the United States:

  • FOB Value: USD 15,000
  • Freight: USD 1,200
  • Insurance: USD 250
  • Total CIF Value: USD 16,450
  • Exchange Rate: EUR 0.92 per USD
  • Customs Duty Rate: 1.7% (machinery under EU tariff)
  • VAT Rate: 20%

Calculation

Customs Value (CIF) = USD 16,450 × EUR 0.92 = EUR 15,134

Customs Duty = EUR 15,134 × 1.7% = EUR 257

VAT Taxable Amount = EUR 15,134 + EUR 257 = EUR 15,391

Import VAT = EUR 15,391 × 20% = EUR 3,078

Total Import Cost: Customs Value: EUR 15,134 

Customs Duty: EUR 257 

Import VAT: EUR 3,078 

Total Taxes: EUR 3,335 

Total Landed Cost: EUR 18,469

Example with Higher Duty Rate

Importing textiles from China with 12% duty:

  • Customs Value: EUR 10,000
  • Customs Duty (12%): EUR 1,200
  • VAT Taxable Amount: EUR 11,200
  • Import VAT (20%): EUR 2,240
  • Total Taxes: EUR 3,440

The compounding effect significantly increases costs when customs duty applies.

Import VAT Rates in Austria

Austria applies multiple VAT rates depending on the goods classification.

  1. Standard Rate: The standard VAT on imported items in Austria rate is 20% (Normalsteuersatz) and applies to most imported goods. This covers general merchandise, electronics, clothing, furniture, vehicles, and most consumer products.
  2. Reduced Rate: A 13% reduced VAT rate (ermäßigter Steuersatz) applies to:
    • Certain cultural services and events
    • Live animals for food production
    • Accommodation services (hotel stays)
    • Plants and flowers
    • Firewood and wood products for heating
    • Certain agricultural supplies
  3. Super-Reduced Rate: A 10% super-reduced rate (ermäßigter Steuersatz) applies to:
    • Foodstuffs and beverages (with exceptions like alcoholic drinks and restaurant meals)
    • Books (printed and certain digital formats)
    • Newspapers and periodicals
    • Pharmaceuticals and medical products
    • Certain passenger transport services
    • Certain agricultural inputs
  4. Zero-Rated Goods: Certain supplies attract 0% VAT (zero-rating):
    • Intra-community supplies (exports to other EU states)
    • International transport services
    • Goods exported outside the EU
      The zero-rating of VAT on imports in Austria rarely applies as goods are imported for domestic consumption.
  5. Rate Determination: Proper classification under EU Combined Nomenclature (CN) codes determines applicable customs duty and VAT rate. Misclassification can result in incorrect VAT assessment, duty demands, and penalties. Austrian Customs provides Binding Tariff Information (BTI) rulings for uncertain cases.
  6. Special Categories: Austria applies specific rules to certain imports, including pharmaceuticals requiring health authority approval, foodstuffs subject to food safety regulations, and controlled goods requiring special permits.

Import VAT Documentation and Payment

Proper documentation and payment procedures ensure efficient customs clearance.

Key Documents Required

  • Customs Declaration (Single Administrative Document – SAD): Filed electronically through EU customs systems
  • Commercial Invoice: From the supplier detailing goods, values, and transaction terms
  • Bill of Lading / Airway Bill: Transport document evidencing shipment
  • Packing List: Describing contents and packaging details
  • Certificate of Origin: For preferential tariff claims under EU trade agreements
  • Import License/Permit: For restricted or controlled goods
  • EUR.1 Movement Certificate or REX Statement: For preferential treatment under origin rules
  • Additional Certificates: For regulated products (food safety, CE marking, etc.)

Electronic Customs Systems

Austria uses EU-harmonized customs systems:

  • Import Control System 2 (ICS2): Pre-arrival security filings
  • Austrian Customs Portal (ZIS): Electronic declaration system
  • Integration with EU customs databases and TARIC

Payment Methods

Import VAT must be paid before customs releases goods. Payment options include:

  • Bank Transfer: Direct payment to the Austrian Customs account
  • Electronic Payment Systems: Through customs payment portals
  • Customs Agent Payment: Licensed agents pay on behalf of importers
  • Postponed Accounting: Eligible VAT-registered businesses defer payment
  • Customs Guarantee: For regular importers to secure duties and taxes

Customs Clearance Process

Upon declaration and payment, Austrian Customs issues:

  • Release documentation authorizing goods removal
  • Import VAT certificate serving as evidence of VAT paid (for input tax claims)
  • Compliance records for audit purposes

Timelines

Pre-arrival declarations are recommended. Standard declarations typically process within hours. Goods must be cleared promptly to avoid storage charges and potential abandonment procedures.

Postponed VAT Accounting for Imports

Austria offers postponed VAT accounting, allowing eligible importers to defer immediate payment and improve cash flow.

What is Postponed VAT Accounting? 

Postponed VAT accounting (Reverse-Charge-Verfahren bei Einfuhr) allows VAT-registered Austrian businesses to account for import VAT in their VAT return rather than paying it upfront to customs. The mechanism works as follows:

  • Import VAT is not paid at customs clearance
  • The importer declares import VAT as both output tax (acquisition) and input tax in their VAT return
  • If amounts offset (typical for goods used in a taxable business), no net payment occurs
  • Cash flow impact is eliminated through accounting entries

Eligibility Requirements: To use postponed accounting:

  • Must hold a valid Austrian VAT registration (UID number)
  • Must apply for authorization through Austrian Customs
  • Must maintain good compliance records with both customs and tax authorities
  • Must meet any security or guarantee requirements if imposed

Application Process: Apply to Austrian Customs, providing:

  • VAT registration certificate (UID-Nummer)
  • Business registration documents
  • Financial information, if requested
  • Description of import activities and volumes

How It Works

When clearing goods under postponed accounting:

  1. Customs calculates import VAT but doesn’t collect it
  2. The import documentation shows a postponed VAT amount and authorization
  3. Importer includes the amount in the next VAT return (typically monthly):
    • Declared as output tax for import acquisition
    • Declared as input tax (if goods used for taxable supplies)
  4. Amounts offset if goods support taxable activities

Benefits:

  • Eliminates working capital tied up in import VAT
  • Simplifies cash flow forecasting and management
  • Reduces payment processing and banking fees
  • Particularly valuable for high-volume importers and just-in-time supply chains

Compliance Requirements

Authorized businesses must:

  • Accurately report all postponed VAT in monthly VAT returns
  • Maintain complete customs and VAT documentation
  • File timely VAT returns (typically monthly for businesses using postponed accounting)
  • Respond promptly to Austrian Customs and tax authority inquiries
  • Notify authorities of any changes in business circumstances

Non-compliance results in authorization revocation, potential back-assessments with interest, and penalties.

Import One-Stop Shop (IOSS) for Distance Sales

The EU’s Import One-Stop Shop significantly changed how VAT is collected on low-value imports from non-EU countries.

What is IOSS? 

IOSS (Import One-Stop Shop) is an electronic portal allowing suppliers and marketplaces selling goods valued up to €150 to EU consumers to collect and remit VAT at the point of sale rather than at import. Implemented July 1, 2021, IOSS aims to simplify VAT collection, speed customs clearance, and improve compliance.

How IOSS Works:

  • Non-EU supplier or EU intermediary registers for IOSS in one EU member state
  • VAT is charged at checkout based on the destination country rate 
  • VAT is declared and paid through quarterly IOSS returns
  • Upon import into Austria, goods clear without additional VAT collection (customs verifies the IOSS number)
  • Customs duty doesn’t apply to goods under €150 (separate from VAT treatment)

Benefits for Austrian Consumers:

  • Final price known at checkout (no delivery surprises)
  • Faster customs clearance
  • No courier handling fees for VAT collection
  • Improved transparency

Benefits for Sellers:

  • Simplified EU-wide VAT compliance through a single portal
  • Improved customer experience and conversion rates
  • Reduced abandoned deliveries due to unexpected charges
  • Competitive advantage over non-IOSS sellers

Reclaiming Import VAT as a Business

VAT-registered businesses can recover import VAT as input tax, making it a temporary cash flow item rather than a final cost.

1. Eligibility for Input Tax Credit

Registered businesses can claim import VAT as input tax (Vorsteuerabzug) if:

  • They hold a valid Austrian VAT registration (UID-Nummer)
  • Goods are imported for making taxable supplies
  • Proper documentation (customs clearance documents) is maintained
  • Goods are not for exempt supplies, private use, or blocked categories

2. Claiming Process

Import VAT is claimed through the standard VAT return (Umsatzsteuervoranmeldung – UVA):

  • Customs documents serve as evidence of import VAT paid
  • Amount is declared in the appropriate input tax field (typically Field 083)
  • Credit becomes available in the return period when the import occurred
  • If input tax exceeds output tax, a refund can be requested

3. For Postponed Accounting

  • Import VAT appears in both the output tax (acquisition) and the input tax sections of the return
  • Amounts offset automatically if goods are used for taxable supplies
  • Net position reflects the total VAT liability or refund

4. Claiming Timelines

  • Input tax must generally be claimed within statutory periods 
  • Most businesses claim in the period when import VAT was paid or postponed
  • Austrian businesses typically file monthly VAT returns (UVA)
  • Annual reconciliation through VAT annual return (Umsatzsteuerjahreserklärung)

5. Blocked Input Tax

Certain categories don’t provide input tax credit, including:

  • Goods for making exempt supplies
  • Private motor vehicles (with limited business exceptions per Austrian law)
  • Excessive entertainment and representation expenses
  • Certain luxury goods and employee benefits

6. Documentation Requirements

To support claims:

  • Retain customs clearance documents showing VAT paid or postponed
  • Maintain commercial invoices and shipping documentation
  • Keep records linking imports to taxable business activities
  • Preserve all documentation for 7 years (Austrian statutory requirement)

7. Refund Process

When input tax regularly exceeds output tax (exporters, start-ups, capital-intensive businesses):

  • Claimed through a monthly or quarterly VAT return
  • Austrian tax authorities process refunds typically within 4 to 8 months for straightforward claims
  • Complex claims or those selected for audit take longer
  • Electronic filing through FinanzOnline expedites processing

Common Challenges and Compliance Mistakes

Austrian importers frequently face issues that can delay clearances or trigger penalties.

  • Incorrect Customs Valuation: Missing freight or insurance costs, related-party pricing errors, or improper deductions lead to reassessments. Undervaluation can trigger penalties or criminal action. Always declare the full CIF value.
  • Misclassification of Goods: Wrong CN/TARIC codes result in incorrect duty or VAT rates. Reduced VAT rates (13%, 10%) require precise classification. Use the Binding Tariff Information for unclear products.
  • Missing or Incomplete Documentation: Incomplete invoices, permits, or transport documents delay clearance, increase storage costs, and block input VAT recovery.
  • Failure to Use Postponed Accounting: Eligible VAT-registered businesses paying import VAT upfront face unnecessary cash-flow strain. Regular importers should assess postponed accounting approval.
  • Non-Reconciliation of Import VAT: Poor tracking leads to lost credits and audit risks. Monthly reconciliation between customs records and VAT returns is essential.
  • Claiming Credit on Ineligible Goods: Input VAT claims on blocked items, such as private vehicles or exempt supplies, result in disallowances and penalties.
  • IOSS Confusion: Misapplying IOSS causes double VAT payment or delays. Confirm whether low-value imports were correctly reported under IOSS before paying VAT at customs.
  • Brexit-Related Issues: UK goods are treated as non-EU imports, requiring full customs declarations and import VAT, impacting supply chains if not planned correctly.
  • Language Barriers: Customs processes are primarily in German. Non-German speakers should use experienced agents or official English resources to avoid errors.

How Commenda Can Help

Managing import VAT across jurisdictions requires precise tracking, strong documentation, and consistent credit recovery. Commenda streamlines these processes through its AI-powered global compliance platform.

  • Automated Import VAT Tracking: Commenda captures import VAT paid or postponed, tracks customs declarations, and reconciles amounts with VAT returns, ensuring eligible input tax is fully claimed and audit-ready.
  • Multi-Jurisdiction VAT Management: Businesses importing into Austria and other countries get a single view of global import VAT obligations. The platform replaces fragmented country-specific workflows with unified, EU-aligned processes and complete audit trails.
  • Document Centralization: All customs declarations, invoices, shipping documents, and payment records are stored securely in one digital workspace, supporting Austria’s seven-year record-keeping requirements.
  • Compliance Accuracy: Automated validation against Austrian VAT rates, EU duty rules, and exemptions reduces errors and ensures accurate reconciliation between import VAT and monthly VAT returns.

Whether handling routine imports, IOSS-based e-commerce, or postponed accounting, Commenda turns complex import VAT compliance into a controlled, automated process. Book a free demo today.

FAQs About Import VAT in Austria

Q. Why am I being charged Import VAT even after I already paid VAT at checkout?

If the seller used IOSS and charged Austrian VAT (20%) with a valid IOSS number, no import VAT applies. If the checkout VAT was foreign VAT, Austrian import VAT is still due.

Q. Why did my package get held by customs due to unpaid VAT, and how do I release it?

Packages are held when import VAT is unpaid, and the IOSS wasn’t used. The courier issues a VAT invoice. Pay it to release the goods. VAT-registered businesses can reclaim it.

Q. What should I do if the courier charged me the wrong Import VAT amount?

Request a breakdown showing CIF value, duty, and VAT. Import VAT should be 20% (or 13%/10%) of the duty-inclusive value. Raise errors with the courier or Austrian Customs.

Q. Why is Import VAT higher than expected compared to the item price?

Import VAT is calculated on item value plus shipping, insurance, and any customs duty, not just the purchase price. This increases the taxable base.

Q. What happens if I refuse to pay Import VAT? Will the package be returned or destroyed?

Unpaid VAT means goods won’t be released. After the holding period, items may be auctioned or destroyed, with no refund from customs or the seller.

Q. Can I get a refund on Import VAT if I return the imported item to the seller?

VAT-registered businesses must reverse claimed input VAT. Non-registered individuals generally can’t get refunds from Austrian Customs. Seller refunds depend on policy.

Q. How do I dispute Import VAT charges if customs misclassified my goods?

File an appeal with Austrian Customs within the deadline, providing technical evidence. Misclassification can affect both customs duty and VAT rate.

Q. Why am I paying VAT twice when importing goods into Austria?

You’re not. Foreign VAT paid to a seller isn’t Austrian VAT. Import VAT is the only Austrian tax, and businesses can reclaim it as input VAT.

Q. Does Import VAT apply to second-hand, refurbished, or used goods bought from abroad?

Yes. Import VAT applies regardless of condition. VAT is charged on the actual transaction value at the applicable rate.

Q. How long does it take to get a refund if I was overcharged Import VAT at customs?

Businesses reclaim via VAT returns, typically processed within 30–60 days. Corrections for non-registered individuals may take several weeks or longer.