Sales tax in Germany and Austria

Every European country, which also applies to the EU states, has its own tax legislation. The result is different tax rates on goods and services. This also applies to them value added tax in Germany and Austria.

Different tax rates - sales tax in Germany and Austria 

• Austria can describe itself as a country that has stuck to a sales tax once it has been decided for a very long time. Since 1995 the general tax rate has been 20 percent (reduced 10 percent). There is also an intermediate tax rate of 12 percent, the same as for sale of wine from our own production is used.
• In Germany, the sales tax rate has been 19 percent since 2007 (reduced 7 percent). In both countries there are a number of services that are tax-exempt, such as services from doctors, Banks and insurance.

Companies subject to sales tax use acquisition tax instead of import sales tax

The German and Austrian companies that are subject to sales tax can, in contrast to earlier do business within the European Union without any border formalities make.

• Instead of the previous import sales tax, the legislator has set the taxation of intra-community acquisitions.


Posting import sales tax - what you should pay attention to

If you are an entrepreneur in another EU country, the supplier's invoice contains ...

• The acquisition tax must be calculated in the respective company at the tax rates typical for the country. If the acquisition tax is incurred by the company when purchasing goods, it can be deducted as input tax.
• German and Austrian companies are only allowed to choose the purchase tax option if both partners are subject to VAT in their countries.
• For example, the commercial sale of goods by a German company to VAT-exempt entrepreneurs in Austria is not considered an intra-Community acquisition. In the invoice for the VAT-exempt company, the applicable German VAT must already be included and sent to a German Tax office be discharged.

Within the European Union, at least for commercial trade, the country of destination principle is used. This means that a service (e.g. delivery of goods) is taxed in the country that receives it. Who as an Austrian in a German On-lineShop only pays the German sales tax of 7 or 19 percent.