How to Claim VAT Refund for an Austrian Business

Understanding VAT in Austria

The Austrian Value Added Tax, known locally as Umsatzsteuer (USt) or Mehrwertsteuer (MwSt), is a consumption-based tax levied on most goods and services. The standard VAT rate is 20%, with reduced rates of 13% and 10% applying to specific goods such as foodstuffs, books, medicines, and cultural services.

Austria follows the EU VAT model, meaning registered businesses charge VAT on sales (output tax) and can reclaim VAT paid on purchases (input tax). The refund mechanism ensures that only the final consumer bears the tax burden. VAT-registered businesses can offset their input tax against output tax through periodic filings or claim direct refunds when applicable.

Foreign and EU-based businesses may recover VAT on Austrian business expenses under the 8th Directive (EU businesses) or the 13th Directive (non-EU companies). This system provides a path for Austria tax refund VAT for both resident and non-resident companies.

For more detailed information about how VAT compares with other systems, refer to Commenda’s VAT vs Sales Tax guide and our Sales Tax Guide.

Who Can Claim a VAT Refund?

Eligibility for an Austria VAT refund depends on your business status and the nature of transactions:

1. VAT-Registered Austrian Businesses

Businesses registered for VAT in Austria can reclaim VAT paid on business-related expenses such as office rent, equipment, and local supplier invoices. Input VAT deductions are made through periodic VAT returns, filed monthly or quarterly.

2. EU-Based Businesses

Businesses established in other EU member states can reclaim Austrian VAT via their own national tax portals under the 8th Directive. Claims are forwarded electronically to the Austrian tax authorities. Valid invoices, certificates of status, and transaction documentation are required.

3. Non-EU Businesses

Companies outside the EU (for example, the United States or the United Kingdom) may also reclaim Austrian VAT under the 13th Directive, without the need for a local tax representative. These claims must be submitted manually, often including original invoices and proof of payment.

Exporters, cross-border service providers, and businesses in exempt sectors may also qualify for VAT refunds in Austria when transactions align with eligible business activities.

When Can Austrian Businesses Claim a VAT Refund?

Timing is crucial when claiming an Austrian VAT refund. Businesses must comply with defined claim windows:

• Domestic Austrian businesses: Refund claims are generally submitted through periodic VAT returns, monthly, quarterly, or annually.
• EU-based claimants (8th Directive): Refund applications must be filed by 30 September 2025, within the year following the year in which the expenses were incurred.
• Non-EU claimants (13th Directive): Refund applications are due by 30 June 2025 of the following year.

For claims above EUR 400, the standard (non-simplified) process applies. Claims below EUR 400 may use the simplified route, provided documentation is complete. Late or incomplete submissions are often rejected, emphasizing the need for accurate compliance tracking.

To better understand your timing obligations and documentation requirements, review Commenda’s Sales Tax Compliance resource.

What Can You Claim?

Eligible expenses for a VAT tax refund in Austria typically include costs directly related to taxable business operations. 

These may include:

• Business travel and accommodation in Austria.
• Public transport and taxi fares.
• Office supplies and professional services.
• Entry fees for trade fairs, exhibitions, and business conferences.
• Equipment purchases, machinery, or tools used for commercial purposes.

For non-resident companies, expenses such as local supplier invoices, event participation fees, and marketing spend within Austria may also qualify. However, all invoices must display a valid Austrian VAT number (UID) in the format U12345678 and meet Austrian invoicing standards.

If your business participates in B2G transactions, please note that electronic invoicing (e-invoicing) is mandatory for these engagements, although it is optional for B2B transactions.

What Expenses Are NOT Eligible for a VAT Refund in Austria?

While the Austrian VAT refund scheme covers many legitimate business expenses, specific categories are explicitly excluded under Austrian law. 

Non-refundable items include:

• Entertainment and hospitality costs (e.g., client dinners, corporate events).
• Fuel and passenger vehicles, unless used exclusively for business purposes.
• Mixed-use expenses where private and business costs are intertwined.
• Non-business purchases or personal consumption.
• Tax-exempt supplies, such as financial and insurance services.

Companies should consult the Austrian VAT Code or guidance issued by the Bundesministerium für Finanzen (BMF) to confirm whether specific expenses are refundable.

Understanding these exclusions helps avoid compliance risks and rejection of refund claims. For best practices on maintaining proper exemption certificates, see Commenda’s Sales Tax Exemption Certificate article.

Are Non-Austrian Businesses Eligible for a VAT Refund?

Yes, both EU and non-EU entities can recover Austrian VAT under specific directives:

• EU Businesses (8th Directive): Claims must be submitted electronically through their home country’s tax portal, which forwards the application to Austrian authorities.
• Non-EU Businesses (13th Directive): Manual applications must include the original invoices, proof of payment, and a certificate of taxable status issued by the company’s home tax authority.

Documentation should demonstrate that the business incurred Austrian VAT on eligible expenses and is not engaged in VAT-liable transactions within Austria.

Unlike many other EU countries, Austria does not require reciprocity agreements for non-EU refund claims. This makes it relatively straightforward for international businesses to recover VAT.

Applications should be submitted to:

Bundesministerium für Finanzen (BMF) – VAT Refund Department, Vienna, Austria.

Late submissions after the 30 June or 30 September deadlines are not accepted.

Step-by-Step: Reclaiming VAT for Austrian Businesses

Domestic businesses can reclaim VAT through the following steps:

1. Ensure VAT Registration: Verify that your VAT registration is active and up to date.
2. Identify Deductible Expenses: Confirm that expenses align with deductible categories under Austrian VAT law.
3. Complete the VAT Return: File through the Austrian tax portal or local accounting software integrated with the FinanzOnline system.
4. Attach Supporting Documentation: Upload digital invoices and proofs of business use.
5. Submit on Time: Depending on your reporting cycle, ensure timely submissions to avoid penalties.
6. Track Refund Status: Monitor refund progress in the online system and respond promptly to any queries from the Austrian Tax Authority.

Maintaining compliance through each step ensures accuracy and accelerates refund approval. For more insights into VAT and sales tax administration, explore Commenda’s Sales Tax Platform.

Step-by-Step: Reclaiming VAT for Overseas Businesses

For non-Austrian companies, the process is slightly different but follows structured directives:

1. Determine Eligibility: Confirm whether your home country allows claims under the 8th or 13th Directive.
2. Prepare Documentation: Collect valid invoices, a certificate of business status, and proof of non-registration in Austria.
3. Complete the Refund Form:
   • EU companies use their home country’s electronic VAT portal.
   • Non-EU companies complete the 13th Directive Form (available via the Austrian Tax Office).
4. Submit Application:
   • EU applications are transmitted electronically.
   • Non-EU applications are sent physically to the BMF in Vienna.
5. Await Decision: The Austrian authorities typically process refunds within four to six months.
6. Receive Payment: Approved refunds are paid via international bank transfer to the applicant’s designated account.

This structured method simplifies the process of claiming a VAT refund online and clarifies how VAT refunds work for both EU and non-EU entities.

Documentation and Compliance Checklist

Proper documentation is critical for approval. Each Austria VAT refund application must include:

• Valid VAT invoices showing Austrian UID numbers.
• Certificate of incorporation or business license.
• Proof of payment (bank statements or receipts).
• Certificate of taxable status (for non-EU applicants).
• Detailed breakdown of claimed expenses.
• Applicant’s international bank details (IBAN, SWIFT).

All records must be retained digitally in PDF or XML format for a minimum of 7 years to meet Austria’s electronic recordkeeping standards.

How to Stay VAT-Compliant With Your Paperwork

To maintain compliance during the Austria VAT refund process:

• Retain digital copies of invoices, expense receipts, and certificates.
• Ensure invoices contain all mandatory fields, supplier UID, date, taxable amount, and VAT rate.
• Store financial records securely for the statutory retention period (at least seven years).
• For B2G transactions, use the government-approved e-invoicing format compliant with the Austrian DEV system.
• Respond promptly to Austrian Tax Office inquiries to avoid delays.

Establishing an internal audit trail minimizes the risk of penalties or refund denial. To understand audit frameworks further, refer to Commenda’s Sales Tax Audit article and the Statute of Limitations overview.

How Commenda Simplifies Your VAT Refund Process

Navigating Austrian VAT compliance can be complex, especially for multinational organizations managing cross-border invoices and refund claims. 

Commenda simplifies the process with:

• Automated Refund Tracking: Real-time visibility into refund submissions and processing timelines.
• Country-Specific Expertise: Compliance teams specializing in Austria VAT refund and EU directives.
• Seamless Integration: Syncs with your existing ERP or accounting systems for accurate filings.
• Reduced Errors and Faster Refunds: AI-driven checks ensure your applications meet all Austrian Tax Office standards.
• Ongoing Support: Advisory and audit assistance to maintain compliance year-round.

Partnering with Commenda means you can focus on operations while ensuring timely, compliant, and optimized VAT recovery.

To learn more about maintaining tax compliance across jurisdictions, explore our guides on Why Sales Tax Is Important, Economic Nexus, and Sales Tax Permit. Book a demo call with Commenda today!