What are the Austrian VAT rates in 2025?

Austria's Umsatzsteuergesetz (UStG) provides for three rates of Umsatzsteuer, making it one of a small number of EU member states operating a three-tier VAT system. Understanding which rate applies to a supply is critical for correct invoicing and Voranmeldung filing.\n\n20% Standard Rate (Normalsatz)\nThe standard rate applies to all supplies of goods and services not specifically assigned to a reduced rate. This covers: most professional services (IT, consulting, design, accounting, legal), manufactured goods, electronics, clothing, restaurants and food service (since the COVID relief expired), alcoholic beverages, tobacco, motor vehicles, financial services where taxable, digital downloads and streaming services, and construction and renovation services.\n\n10% Reduced Rate (Ermäßigter Steuersatz)\nThe 10% rate applies to:\n- Food and non-alcoholic beverages (groceries, but not restaurant meals)\n- Books, newspapers, and periodicals — both physical and digital (e-books qualify since the 2020 EU digital publication rules)\n- Pharmaceuticals and medical devices\n- Residential rent (Wohnraummiete) — this is a significant category, making Austrian housing costs marginally lower for tenants\n- Public transport (trains, buses, trams, short-haul flights within Austria)\n- Admission to museums, theatres, concerts, and other cultural events (qualifying non-profit organisers)\n- Passenger transport\n- Postal services for universal service obligations\n\n13% Intermediate Rate (Zwischensteuersatz)\nThe 13% rate was introduced in 2016, primarily for hotel accommodation. It applies to:\n- Hotel accommodation and short-stay rentals (Beherbergungsleistungen) — this is the largest commercial category at 13%\n- Camping sites\n- Firewood and other forestry products\n- Living plants, flowers, and trees\n- Livestock and animals at exhibitions\n- Wine and Buschenschank: wine and other beverages sold directly at the producer's own premises (Buschenschank or Straußenwirtschaft) — a distinctly Austrian category\n- Cultural events by eligible non-profit organisations (different categories than the 10% cultural exemption)\n\nThe hospitality complexity: 13% + 10% on one invoice\nHotels and hospitality businesses frequently face mixed-rate invoicing. A hotel charging for room accommodation (13%) and breakfast (10% — food) must split the invoice correctly. Many hotels include breakfast in the room rate and apply 13% to the whole — strictly incorrect but widely practised. The Finanzamt periodically audits hotel invoicing.\n\nCommon misclassification areas\nAreas frequently misclassified:\n- Restaurant meals: 20% (not 10% food — the cooking service is standard-rated)\n- Coffee and hot drinks: 20% in a café, 10% in a supermarket\n- Digital services: 20% for software/streaming, 10% for e-books\n- Alcohol: 20% regardless of where sold, except wine at the producer (13%)\n- Event tickets: 10% for qualifying cultural organisations, 20% for commercial entertainment\n\nFinanzamt position on rate disputes\nWhere the correct rate is genuinely unclear, businesses can request a binding advance ruling (Auskunft) from the Finanzamt. This is strongly advisable for businesses launching new product lines with ambiguous classification. Once a binding ruling is issued, the business can apply that rate without risk of retrospective adjustment.