VAT Rates Across Europe – and What They Mean for Doing Business in Austria

The Euro­pean Union applies a com­mon VAT frame­work, but each coun­try sets its own VAT rates. These dif­fer­ences can sig­nif­i­cant­ly affect for­eign com­pa­nies oper­at­ing across bor­ders.

European VAT Rates at a Glance

Stan­dard VAT rates in the EU cur­rent­ly range from 17% in Lux­em­bourg to 27% in Hun­gary. Aus­tria sits at 20%, with reduced rates of 10% (e.g. food, books) and 13% (e.g. hotel accom­mo­da­tion, cul­tur­al ser­vices).

Selected examples:

• Ger­many: 19% (7% reduced)
• France: 20% (2.1%, 5.5%, 10%)
• Italy: 22% (4%, 5%, 10%)
• Den­mark: 25% (no reduced rates)
• Ire­land: 23% (mul­ti­ple reduced rates)

Where to Find the Latest VAT Rates in the EU

The Euro­pean Com­mis­sion main­tains an offi­cial, reg­u­lar­ly updat­ed list of all VAT rates in the EU and cer­tain non-EU coun­tries. This resource is essen­tial for for­eign busi­ness­es plan­ning their EU pric­ing and com­pli­ance strate­gies.

→ Offi­cial link to the EU VAT rates overview: EU VAT Rates – Euro­pean Com­mis­sion

Why a Fiscal Representative in Austria Matters

For non-EU com­pa­nies, appoint­ing a Fis­cal Rep­re­sen­ta­tive in Aus­tria is legal­ly required when con­duct­ing tax­able activ­i­ties in Aus­tria. The fis­cal rep­re­sen­ta­tive ensures:

• VAT reg­is­tra­tion and ongo­ing fil­ings,
• cor­rect report­ing and pay­ment,
• com­mu­ni­ca­tion with tax author­i­ties,
• and full com­pli­ance with Aus­tri­an tax law.

Even EU-based com­pa­nies ben­e­fit from vol­un­tary fis­cal rep­re­sen­ta­tion, espe­cial­ly in sec­tors involv­ing cross-bor­der ware­hous­ing, online retail, or B2C ser­vices.

Compliance and Risk Management

Avoid­ing VAT mis­cal­cu­la­tions and fil­ing errors saves time, mon­ey, and legal trou­ble. Work­ing with a skilled Fis­cal Rep­re­sen­ta­tive in Aus­tria and using offi­cial EU data ensures accu­ra­cy and tax safe­ty.