What business expenses are tax deductible in Austria?

Austrian Betriebsausgaben (deductible business expenses) are governed primarily by §4 EStG and reduce taxable profit for both sole traders (Einnahmen-Ausgaben-Rechnung) and GmbHs (Steuerbilanz). The general rule is that expenses must be caused by the business (betrieblich veranlasst), documented, and not on the list of specifically excluded items.\n\nHome office (Homeoffice)\nSince Austria's 2021 Homeoffice reform: employees claim €3/day up to 100 days/year (€300 maximum) as Werbungskosten. Employers can pay €3/day tax-free. Self-employed and GmbH directors with no external office can deduct proportional home costs (rent, electricity, broadband, heating) based on the dedicated room as a percentage of total apartment floor area. A dedicated room is required — a laptop on the kitchen table does not qualify.\n\nEquipment under €1,000 — the GWG rule\nGeringwertige Wirtschaftsgüter (GWG) costing under €1,000 (net of USt) can be fully deducted in the year of purchase under §13 EStG. This threshold is higher than Germany's €800, which gives Austrian businesses slightly more scope for immediate write-offs. Items above €1,000 must be depreciated via AfA (Absetzung für Abnutzung) over their assessed useful lives: computers/laptops typically 3 years (33.3%/year), office furniture 10 years (10%/year), machinery per industry AfA table.\n\nVehicles — the Vorsteuerausschluss and logbook requirement\nBusiness vehicles are deductible but with significant complications. Most importantly: there is NO input tax (Vorsteuer) reclaim on passenger cars, regardless of business use percentage — blocked by §12 Abs 2 Z 2 UStG. For mixed-use vehicles, a detailed Fahrtenbuch (logbook) is required documenting every journey (date, route, business purpose, km). Without a Fahrtenbuch, the Finanzamt treats 100% as private. Commercial vehicles (LKW, vans) are not subject to the Vorsteuerausschluss.\n\nMeals and entertainment — the 50% rule\nRepräsentationsaufwand (business entertainment) is 50% deductible under §20 Abs 1 Z 3 EStG. This applies to meals with external clients, client hospitality, and business-related entertainment. The 50% cap is absolute — there is no way to claim 100% on a business meal regardless of how commercial it was. Internal staff events (Betriebsveranstaltungen) are fully deductible and tax-free for employees up to €365/person/year.\n\nProfessional fees — fully deductible\nSteuerberater (tax adviser), Rechtsanwalt (lawyer), Wirtschaftsprüfer (auditor), and notary fees for business matters are 100% deductible. Unlike entertainment, there is no cap or partial restriction.\n\nTraining and professional development\nWork-related Fortbildung (further training in the current occupation) is 100% deductible. The distinction between Fortbildung (deductible as Betriebsausgabe) and Ausbildung (new career education, potentially personal Sonderausgaben) can be subtle and is an audit focus area.\n\nInsurance — business policies fully deductible\nProfessional liability (Berufshaftpflicht), property, business interruption, and D&O insurance are fully deductible. Personal life insurance and private health insurance are NOT business deductions.\n\nTravel and subsistence\nBusiness travel is fully deductible. Daily allowances: €26.40/day for Austrian trips over 12 hours, €13.20 for 8–12 hours. International rates set per country by BMF regulation. Mileage rate for personal car use: €0.42/km.\n\nThe non-deductible list\nExpenses specifically not deductible (§20 EStG): private living costs, commuting (Pendlerpauschale rules apply instead), penalties and fines, acquisition of investments/participations (capital expenditure), contributions to excessive executive pension schemes.\n\nDocumentation standards\nThe Finanzamt requires invoices with: supplier name and address, Steuernummer or USt-Identifikationsnummer of supplier, description of goods/services, date, amount, and separately stated USt amount. Handwritten receipts from private individuals can support cash expenses but are higher-risk in audits.