Accounting administration

After establishing an enterprise and registering it in the commercial register in Austria, you will have the obligation to do bookkeeping for the enterprise. Double-entry bookkeeping is in practice in Austria and the tax deduction may reach up to 42.6%. Financial statements in an Austrian GmbH also require an annual audit, which presents a costly item. We can take care of this with the help of our partner – an Austrian tax consultancy office. Besides administration of bookkeeping, we will inform you of any changes to the legislation on bookkeeping and regulations regarding the value added tax.

In the construction industry, a service is usually connected to a real estate; therefore, the place of delivery is Austria. If you provide construction services in Austria via your home organization and your customer is a natural person, you must register your company at the Austrian tax office and invoice your services with the Austrian VAT (20%). If their revenue is lower than EUR 36,000 in the given calendar year, Austrian taxpayers do not have to be registered as VAT taxable persons. However, this limit does not apply to foreign companies. If your customer is an entrepreneur, you will issue invoices without VAT, while the reverse charge applies in Austria. If your customer is an entrepreneur that is not VAT taxable, they will pay VAT to the Austrian tax office. In this case, you do not have to register for VAT.

It is important to know that construction companies in Austria issue invoices without VAT to each other, which makes them liable for the national reverse charge. For instance, if you invoice an amount without VAT to an Austrian VAT payer and your Slovak supplier wants to invoice its services to you, in a project based in Austria, the Slovak supplier does not have to register as a VAT payer in Austria. The Slovak supplier will simply invoice an amount without VAT according the Austrian regulation which governs the issues of the reverse charge of construction companies.