Fiscal Representative in Austria: VAT Obligations and New Thresholds for Foreign Businesses from 2025

„A fiscal representative in Austria is often the key to successful market presence.“

More and more foreign companies – especially from EU member states – are discovering Austria as an attractive market for trade and services. However, doing business in Austria also comes with tax obligations. Those providing VAT-liable services in Austria must comply with the country’s complex VAT regulations. In many cases, a fiscal representative in Austria is required – a key partner in ensuring tax compliance.

What Is a Fiscal Representative in Austria?

A fiscal representative is a tax representative based in Austria who acts on behalf of a foreign company. Their role includes registering the company with the Austrian tax authorities, handling communication with the tax office, and submitting VAT returns on time. This service is particularly crucial for non-EU companies, but many EU-based businesses also appoint a fiscal representative in Austria to minimize tax risks.

New VAT Thresholds from 2025: What Businesses Need to Know

As of January 1, 2025, Austria has introduced a new threshold for the small business regulation:

• €55,000 gross per calendar year

This replaces the previous threshold of €35,000. Additional rules apply to foreign businesses:

• A VAT exemption may apply for EU-wide annual turnover under €100.000.
• If turnover exceeds €55.000 in Austria, VAT registration becomes mandatory.

Who Needs a Fiscal Representative in Austria?

EU-Based Companies

• Not legally required
• Voluntary appointment possible for B2C transactions, intra-community supplies, or when not using the EU-OSS scheme

Non-EU Businesses

• Mandatory appointment of a fiscal representative
• Applies to the supply of goods or services with the place of performance in Austria

Typical Scenarios Requiring a Fiscal Representative

E-commerce / Distance Selling

A German online shop delivers to Austrian private customers. If the EU-wide delivery threshold of €10,000 is exceeded and the EU-OSS scheme is not used, Austrian VAT registration is required. A fiscal representative in Austria handles the tax procedures.

Intra-Community Supplies

An Italian machinery manufacturer delivers to Austria. To ensure correct tax treatment, a fiscal representative in Austria for intra-community supplies can assist.

Advantages of Having a Fiscal Representative in Austria

• Legally compliant VAT registration
• Timely filings and avoidance of penalties
• Communication with tax authorities
• Guidance on reverse charge, OSS, and VAT ID applications

Risks Without a Fiscal Representative

• Fines for delayed registration
• Loss of input tax deduction
• Damage to business reputation