Tax Representative in Austria: A Comprehensive Guide for Foreign Artists and Athletes

„Tax lia­bil­i­ty knows no bor­ders – but clear rules help nav­i­gate it cor­rect­ly.“

An increas­ing num­ber of for­eign entre­pre­neurs, artists, and ath­letes are per­form­ing or offer­ing ser­vices in Aus­tria. Any­one gen­er­at­ing rev­enue in Aus­tria must com­ply with com­plex tax oblig­a­tions. A key con­cept in this con­text is the “tax rep­re­sen­ta­tive in Aus­tria.” This arti­cle pro­vides a detailed guide to the tax oblig­a­tions of for­eign artists and ath­letes and explains why appoint­ing a tax rep­re­sen­ta­tive is essen­tial.

Why Appoint a Tax Representative in Austria?

A tax rep­re­sen­ta­tive is a legal or nat­ur­al per­son based in Aus­tria who rep­re­sents for­eign busi­ness­es in tax mat­ters. When a for­eign busi­ness gen­er­ates tax­able rev­enue in Aus­tria  with­out a per­ma­nent estab­lish­ment, Aus­tri­an VAT law requires the appoint­ment of a tax rep­re­sen­ta­tive. This applies espe­cial­ly to:

• Artist agen­cies orga­niz­ing con­certs, tours, or shows
• For­eign ath­letes par­tic­i­pat­ing in tour­na­ments or sport­ing events
• Event orga­niz­ers and book­ing agen­cies with­out a reg­is­tered office in Aus­tria

The tax rep­re­sen­ta­tive is respon­si­ble for:

• VAT reg­is­tra­tion
• Pay­ment of VAT to the Aus­tri­an tax office
• Prepar­ing and fil­ing tax returns
• Ensur­ing prop­er invoice issuance

VAT for Foreign Artists and Athletes

Place of Supply

The place of sup­ply deter­mines whether Aus­tri­an VAT law applies. For B2B ser­vices (e.g., when the event orga­niz­er is a busi­ness), the recipient’s loca­tion is deci­sive. For B2C ser­vices (e.g., when the client is a pri­vate indi­vid­ual), the place of per­for­mance is rel­e­vant.

Reverse Charge Mechanism

If the for­eign ser­vice provider has no fixed estab­lish­ment in Aus­tria but pro­vides ser­vices to an Aus­tri­an busi­ness, the recip­i­ent is liable for the VAT. This mech­a­nism eas­es the bur­den on the for­eign artist but still requires a tax rep­re­sen­ta­tive if the reverse charge does not apply (e.g., tick­et sales).

Invoicing Requirements

Invoic­es must be issued net (exclud­ing VAT) and include:

• The recip­i­en­t’s VAT ID
• A ref­er­ence to the recip­i­en­t’s tax lia­bil­i­ty (reverse charge)

Incor­rect invoic­es show­ing VAT may result in tax lia­bil­i­ties for the artist.

Income Tax Aspects

Limited Tax Liability

For­eign artists and ath­letes who have nei­ther res­i­dence nor habit­u­al abode in Aus­tria are sub­ject to lim­it­ed income tax lia­bil­i­ty for income earned in Aus­tria. This also applies to inter­me­di­ary enti­ties if they are con­sid­ered “active par­tic­i­pants.”

Gross Tax Withholding

For con­tracts for work or employ­ment, the Aus­tri­an pay­er must with­hold a flat-rate tax of 20–25% from the gross amount. Addi­tion­al expens­es paid by the event orga­niz­er (e.g., trav­el or accom­mo­da­tion) are also sub­ject to with­hold­ing tax.

Net Tax Withholding

This allows the deduc­tion of sub­stan­ti­at­ed expens­es and applies to artists res­i­dent in the EU or EEA. Require­ments include:

• Writ­ten dis­clo­sure of expens­es
• Dec­la­ra­tion of any oth­er Aus­tri­an income with­in the same cal­en­dar year

Avoiding Double Taxation

Applying Double Taxation Agreements (DTAs)

Most DTAs con­tain an artist or ath­lete clause that per­mits tax­a­tion in Aus­tria. Some treaties also include pass-through claus­es, which apply when the con­tract is signed via an agency.

Tax Exemption for Publicly Funded Performances

Many DTAs (e.g., with Ger­many or Switzer­land) pro­vide tax exemp­tions in Aus­tria for pub­licly fund­ed per­for­mances.

Simplifications and Withholding Relief

Simplified Procedure

If the artist’s fee is below EUR 1,000 and annu­al earn­ings do not exceed EUR 2,421, with­hold­ing tax may be waived.

Withholding Tax Relief at Source

If a cer­tifi­cate of res­i­dence (Form ZS-QU1/2) is pro­vid­ed, with­hold­ing tax can be reduced or waived. With­out such doc­u­ments, full with­hold­ing applies.