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Guide

The Kleinunternehmer (small-business) VAT scheme

If your turnover stays under €55,000 a year, Austria lets you skip VAT entirely: no VAT on your invoices, no VAT returns. The catch is you also give up reclaiming VAT on your purchases.

The €55,000 turnover limit

Since 2025 the Kleinunternehmer threshold is €55,000 of annual turnover. Stay below it and you are exempt from VAT (Umsatzsteuer). A one-off tolerance of 10 % applies: if your turnover creeps over €55,000 but stays within that band during the year, you keep the exemption to year-end. Exceed the tolerance and VAT kicks in — from the turnover that breaks the limit onward.

No VAT out, no input VAT back

The scheme is a straight trade-off:

  • You charge no VAT. Your invoices show net amounts only, with no VAT line.
  • You deduct no input VAT. You cannot reclaim the Vorsteuer on your own business purchases and investments.

For service businesses with few costs, that usually means simpler admin and a small price edge with private (non-VAT-registered) clients. If you are about to make large, VAT-heavy investments, the maths can flip — reclaiming input VAT may be worth more than the exemption. You can waive the scheme voluntarily, but the waiver binds you for several years, so weigh it with a Steuerberater (tax adviser) first.

The invoice note under § 6 UStG

Because you charge no VAT, your invoices must say why. Austrian law requires a note pointing to the exemption for small businesses — § 6 Abs. 1 Z 27 UStG. Show no VAT amount, and add a line such as:

"VAT-exempt small business under § 6 (1) 27 UStG — no VAT is charged."

Everything else an ordinary invoice needs still applies. If you also work across EU borders, note that a UID (VAT ID) and different rules can come into play even as a small business.

How it fits with income tax

The Kleinunternehmer scheme is only about VAT. It does not change your income tax: you still declare your profit and pay Einkommensteuer through the annual return, and you still pay SVS contributions. VAT status and income tax are separate questions.

Frequently asked questions

What is the turnover limit for the Kleinunternehmer scheme?

Since 2025 the limit is €55,000 of annual turnover. A one-off tolerance of 10 % applies: if you exceed €55,000 but stay within that tolerance during the year, you can remain in the scheme until year-end. Go beyond the tolerance and VAT applies from the turnover that breaks the limit.

Can I still deduct input VAT (Vorsteuer)?

No. The scheme is a trade-off: you charge no VAT on your invoices, but in return you cannot reclaim the input VAT (Vorsteuer) on your own purchases. If you make large VAT-bearing investments, waiving the scheme can sometimes work out better — that is worth checking with a Steuerberater.

What do I have to write on my invoices?

Because you charge no VAT, your invoices must show no VAT amount and instead carry a note explaining why — the exemption under § 6 Abs. 1 Z 27 UStG (the Kleinunternehmer exemption). A short line such as "VAT-exempt small business under § 6 (1) 27 UStG" makes the basis clear to your client.

General information, not individual tax advice — for your own case, consult a Steuerberater. Sources: § 6 UStG (Kleinunternehmer exemption); turnover limit €55,000 with 10 % tolerance since 2025 (WKO / USP).