Cross-border passenger transport services
Cross-border passenger transport in busses, cars or taxis in or through Austria
An entrepreneur's country of origin is not relevant in the context of the value added tax (VAT). Passenger transport services between Austria and the EU are taxed identically to passenger transport between Austria and a third country. Cross-border passenger transport can be carried out by busses and by cars (taxis) operating on occasional or regular basis.
Only the proportional fee (the fee, which is allotted to the Austrian part of the transport route) of the passenger transport service is subject to the Austrian VAT. If a lump sum fee has been agreed for the entire transport service, the fee has to be determined in proportion to the route effectuated on the Austrian territory in relation to the total transport route. Another apportioning, for instance according to the duration of the stay or in relation to the costs incurred per country, is inadmissible. The rate of taxation for passenger transport is 10%.
Example for Calculation of the Austrian VAT
Transport service from the Czech Republic via Austria to Hungary. 170 kilometres are covered in the Czech Republic, 110 km in Austria, 90 in Hungary (total number of kilometres 370, fee 3.200 €). The total transport fee is to be divided by the total number of kilometres; the sum obtained is to be multiplied by the number of kilometres covered in Austria. The result provides the basis for the assessment of the Austrian VAT of 10%.
3.200 €: 370 km = 8,65
8 ,65 x 110 km = 951,35
Fee in Austria: 951 ,35 €
Austrian VAT 10 % 95,14 €
If you are a foreign entrepreneur (i.e. without registered nor a fixed establishment in Austria) and the transport service is provided to another entrepreneur or an (Austrian) public law entity, the following applies:
Assessment basis for tax is the fee for the part of the transport service provided on the Austrian territory. Turnover is subject to tax in Austria, the so called Reverse Charge Procedure according to § 19 Abs. 1 VAT Act 1994 is applicable. In addition to the general invoice rules according to § 11 Abs. 1 VAT Act 1994, invoices have to include the VAT identification number of the recipient of the service and a reference to the shift of the tax liability (§ 19 VAT Act 1994).
The VAT must not be indicated separately; otherwise the service supplier, beside the recipient of the service, who in this case is also the tax debtor, is liable due to the invoicing. Such a falsely invoiced VAT does not entitle to deduct input VAT. The service supplier is liable for the Austrian VAT.
If you are a foreign entrepreneur and if you provide transport services to private individuals, the following applies:
Assessment basis for tax is the fee for the part of the transport service provided on the Austrian territory. The rate of taxation for passenger transport is 10 %. The foreign entrepreneur has to calculate the Austrian VAT, indicate it on the invoice and pay it to the tax office Graz-Stadt; registration and assessment for VAT have to be made at the tax office Graz-Stadt.
It should be noted that compliance with the customs and tax regulations can be subject to control by the Austrian authorities and the basis for the customs and tax duties can be estimated by the same.