- Exemption and Thresholds: Small enterprises in Austria can opt for the SME scheme, which exempts them from various VAT obligations if their annual turnover does not exceed €55,000. Certain transactions, such as occasional building supplies and exempt cross-border transport supplies, are excluded from this scheme.
- Simplified VAT Obligations: Under the domestic SME scheme, businesses are relieved from registering for VAT and submitting periodic VAT returns. In the cross-border SME scheme, a single prior notification replaces the need for VAT registration in multiple member states, with a single quarterly report required instead of multiple returns.
- Quarantine Periods and Appeals: Enterprises excluded from the SME scheme cannot benefit from it for the current and following year, while those voluntarily leaving the scheme face a five-year quarantine before reapplying. Appeals related to the SME scheme must be directed to the relevant Member State of establishment or exemption, depending on the issue.
Source ec.europa.eu
