Austrian VAT – Mehrwertsteuer

In Austria, the value-added tax (VAT, Mehrwertsteuer) system applies different tax rates to various products and services. The main tax rates are the standard 20% rate, as well as the reduced 10% and 13% rates. In this article, we will review the cases in which these reduced rates can be applied and the conditions associated with them.

Standard tax rate: 20%

The 20% standard tax rate applies to most products and services in Austria. This is the default rate unless specified otherwise by law.

Reduced tax rates: 10% and 13%

10% reduced tax rate:

Accommodation services: Accommodation services in furnished residential and sleeping quarters, along with regularly associated ancillary services (e.g., heating), fall under the 10% VAT rate. This applies to both hotel and private room rentals but does not apply to conference room provisions, which are subject to the standard rate.

Rental of camping sites: The rental of camping sites also falls under the 10% reduced VAT rate, provided a unified usage fee is charged for the offered services.

Food and other products: The supply, self-consumption, and import of food, ice cream, certain beverages (e.g., water, milk, and milk-based drinks), as well as books and newspapers, are subject to the 10% reduced VAT rate. Ancillary services such as packaging and delivery costs are also taxed at this rate.

Residential property rental and leasing: The rental and leasing of residential properties, including operating costs but excluding heating costs, fall under the 10% reduced VAT rate. This does not include the rental of business premises or garages.

Passenger transport: Passenger transport by means of vehicles, except aircraft, falls under the 10% reduced VAT rate if the main objective is the transportation of people. Services that provide entertainment and sports activities, such as rafting or summer tobogganing, are subject to the standard rate.

Waste management: Waste management, including the removal of wastewater and waste, falls under the 10% reduced VAT rate.

Hospital revenue: Revenue from hospitals operated by non-public legal entities or non-profit organizations also falls under the 10% VAT rate.

Medicines: The sale of medicines (supply, intra-Community acquisition, and import) falls under the 10% reduced VAT rate. However, medical devices remain subject to the standard 20% VAT rate.

Repair services: Repairs of bicycles, shoes, leather goods, clothing, and household textiles (e.g., bedding, tablecloths, pillowcases, or curtains) fall under the 10% reduced VAT rate if the cost of the materials used for the repair is less than 50% of the total repair charge.

13% reduced tax rate:

Live animals and plants: The supply, self-consumption, and import of live animals (excluding horses not intended for slaughter), plants, firewood, pet food, artworks, and antiques fall under the 13% reduced VAT rate.

Artworks: The supply of artworks falls under the 13% reduced VAT rate if provided by the creator or their successor, a business operator who is not a reseller, or a reseller (art dealer) who has opted out of margin taxation.

Cultural sector: Theater and music performances, museum services, film and circus shows, and services provided by radio enterprises fall under the 13% reduced VAT rate, as long as they are not conducted by administrative bodies or non-profit organizations.

Swimming pools and thermal treatments: Revenue from swimming pools and thermal treatments, including sauna operations, falls under the 13% reduced VAT rate.

Tax Rate (%)	Application Area	Notes
20%	Standard tax rate	Applies to most products and services
10%	Accommodation services	Includes hotel, hospitality, and private room rental, excluding conference room provision
10%	Rental of camping sites	Unified usage fee required
10%	Food, ice cream, beverages	Exceptions: certain drinks, such as water, milk, and milk-based beverages
10%	Books and newspapers
10%	Rental and lease of residential properties	Excludes heating costs and the rental of business premises or garages
10%	Passenger transport	Excludes aircraft and entertainment or sports activities
10%	Waste management	Includes sewage and waste removal
10%	Hospital revenue	For hospitals operated by non-public entities or non-profit organizations
10%	Medicines	Under medical law
10%	Repair services	Repairs of bicycles, shoes, leather goods, clothing, and household textiles
13%	Live animals, plants	Excludes horses not intended for slaughter
13%	Firewood, pet food
13%	Artworks, antiques	Provided by the creator or successor, or under margin taxation
13%	Cultural sector	Theater and music performances, museum services, film and circus shows, radio enterprises
13%	Swimming pools and thermal treatments	Including saunas