Notice for cross-border sellers in the European market: Specific requirements of VAT tax policy at this stage!

Austria's domestic market is relatively small, with a population of more than 8 million and limited consumer market capacity. However, Austria has good infrastructure and is an important transportation hub in Europe. It has a vast surrounding market, especially a strong radiation capacity to the Central and Eastern European market, and mainly produces mid- to high-end products.

The price level in Austria is above the European average, but in the middle of Western European countries. According to Eurostat, the cost of living in Austria is 1.4% higher than the average for all EU countries.

At present, many sellers have received emails from Amazon:

The email shows that sellers need to upload the Austrian VAT registration number before December 31, 2020, otherwise their sales rights in Austria will be suspended.

The standard VAT rate in Austria is 20%. However, during the pandemic (July 1, 2020 - December 31, 2020), the Austrian government has granted certain exemptions to help companies tide over the difficulties. So now is a good time to register for Austrian VAT!

To support businesses and consumers during the pandemic, Austria has lowered the VAT rates on some goods and services:

Austrian VAT rates:

①Austria VAT Application Service Information Form

②Business license (translated into English)

③ Legal person’s ID card/passport (translated into English, passport is recommended)

④Tax payment certificate (translated into English)

⑤ Authorization document (signature of legal person)

The trend of EU tax compliance has already taken shape. Sellers who have met the registration requirements but have not yet registered for tax numbers in other EU countries can prepare in advance to avoid being in a rush when the new policy is forcibly implemented.

(Source: Maiwen)