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payment system was created by several Austrian which companies in Austria become liable for VAT. Since
banks together and is very popular. Customers 2021, the EU-wide delivery threshold for cross-border
log into their online banking portal directly after distance sales is 10.000 Euro per year. Once this amount
selecting the payment method and complete the is exceeded, the affected sales must be taxed in the
transfer in real time. destination country, in this case Austria.
• Credit cards: Visa and Mastercard are also
frequently used. Example: If a German retailer sells goods worth 15.000
• Purchase on account: In 2023, 69% of Austrian Euro to Austria in 2023, they become liable for VAT there
consumers surveyed preferred to pay for their and must pay the VAT directly in Austria.
online purchases on account.
How does the OSS procedure work for Austria?
Establish a transparent returns management The OSS procedure was introduced to reduce the tax
It is inevitable that parcels will be returned. Clearly burden for retailers. It simplifies tax processing for sales
communicating your return conditions and making the within the EU. Companies can declare and pay VAT for
process as easy as possible can turn this challenge into all EU countries centrally through the German Federal
an opportunity. Offer a processing time of four to five Central Tax Office (BZSt). This saves time and eliminates
business days, shipment tracking and clear instructions the need for separate registrations in each EU country.
for returns to build customer trust and stand out from
competitors. There are, however, some limitations: The procedure only
applies to B2C sales and digital services within the EU.
Good to know: exporto supports you with flexible return B2B transactions and goods from non-EU countries are
solutions that simplify your processes, making cross-border excluded.
returns as easy as domestic ones.
For German online businesses that want to sell to Austria,
Understand legal and cultural specifics this means:
In addition to logistical and financial aspects, you should
also consider legal requirements and cultural differences in • Simplif ied tax declaration: Instead of submitting
the Austrian market: separate reports in each destination country, all
sales can be handled through Germany’s Federal
• Tax obligations: Make sure to monitor the delivery Central Tax Office (BZSt).
threshold and use the OSS procedure if necessary • Automation: Processes such as reporting the
(more on that below). relevant VAT in the destination country can be
• VAT rate: While Germany has a standard VAT rate automated by specialized providers, saving time
of 19 %, Austria’s standard rate is 20 %. This can and resources.
cause your products to appear more expensive to
Austrian customers at first glance. Consider the Benefits of the OSS procedure
Austrian VAT rate early in your pricing strategy • Time savings: Centralized tax declaration
to protect your margins. Correct and transparent significantly reduces bureaucratic effort.
labelling of prices creates trust and prevents • Transparency: Retailers maintain a clear overview
misunderstandings. of their tax obligations across the EU.
• Regional references in communication: Adapt • Flexibility: Even with sales in multiple EU
your communication and marketing strategy to countries, tax handling remains simple and
Austrian customers. Clear messages, authenticity straightforward.
and regional references strengthen trust and
promote customer loyalty. Difference between OSS and IOSS
While the OSS procedure is intended for intra-EU
Tax requirements: Delivery threshold for Austria and distance sales, the Import One-Stop-Shop (IOSS)
OSS procedure procedure applies specifically to goods shipped to non-EU
Taxes play a key role in cross-border sales. To comply countries.
with legal regulations and expand to Austria successfully,
retailers should be familiar with the delivery threshold and The IOSS procedure is valid for sales to third countries
the OSS procedure. These regulations ensure transparency with a value of up to 150 Euro. It allows centralized
and make the process easier across the EU. submission of VAT declarations and requires an IOSS ID
in the customs declaration. However, for German retailers
What is the delivery threshold? who exclusively sell within the EU, the IOSS procedure is
The delivery threshold indicates the turnover value at less relevant.

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