Our services > Refund of the 25% deduction for construction and cleaning work
Refund of the 25% deduction for construction and cleaning work
We will help you with administration and solutions in Austria.
Whether you are a company, self-employed or an employee.
Deduction on account of the liability of the customer (Auftraggeberhaftung)
If you as a company or sole trader post your staff to a customer in Austria for construction or cleaning work, your customer will deduct 25% from each invoice. This is to protect your customer from being liable for contributions and social security contributions for your employees, even if it is proven that the employees in question should have been insured under the Austrian social security system (e.g. after 24 months of posting). Part of the deduction in the amount of 20% goes to the Gebietskrankenkasse (health insurance company) and the part of 5% to the relevant tax office.
Refund of deduction, exemption from deduction
The deduction can be claimed back through separate refund requests. You can exempt yourself from the deduction of these contributions by registering your company as an employer in the so-called HFU list. However, this is only possible if you contribute to the Austrian social security system on behalf of your employees and you have been carrying out construction work for at least 3 years.
Frequent questions
When will an austrian customer make a 25% deduction?
The above should be deducted by any customer for construction or cleaning work who wants to protect themselves from the obligation to pay contributions and social security contributions for his subcontractor’s employees.
Can I request a refund?
Yes, you can request a refund of the deduction immediately after it has been deducted and paid by the customer to the relevant authority.