Paperless

Receipts for business expenses must be kept and presented for inspection upon request by the national tax agency. Business expenses submitted for deductions must have receipts as proof of the expense. If receipts are requested and not supplied, the deductions will be denied.

Records can be kept electronically if they contain the identical information as the original receipts. Electronic receipts should include the same information as traditional receipts (i.e. the name and address of the business, the date and time of the purchase, a list of items purchased, and the total amount paid).

VAT rates

There are varying VAT (value-added tax) rates in Austria, depending on the goods and services purchased.

The different tax rates in Austria are as follows:

See the full list of tax rates and tax exemptions here.

For more information, visit the federal ministry of Austria’s finance website.

Per diem

According to Austrian law, a business trip occurs when an employee, on the instructions of the employer, leaves his place of work to carry out official duties or works so far away from his permanent place of residence that he cannot be expected to return to his permanent place of residence every day.

The daily tax-free allowance for domestic business trips may be up to 30 euros per day. If a business trip lasts longer than three hours, one twelfth can be calculated for each hour started.

For example, if a business trip is three hours, no amount should be allotted. For a trip of 4 hours, however, a per diem of 4/12 can be calculated (equalling 10 euros). The full amount (30 euros) is awarded for 11 hours or more in one calendar day.

Journeys abroad The employer may pay tax-exempt per-diem allowances and accommodation allowances for trips abroad at the maximum rate applicable to foreign travel assignments of Federal employees. Tax-exempt reimbursements for overnight accommodation costs, including breakfast, may also be paid in the actually incurred amounts when producing a receipt. Below is the current list of per diem and overnight accommodation allowances for the countries bordering on Austria, as well as the United States:

* Special rates apply to certain major cities (e.g. Rome, Milan, New York, or Washington) and border regions (e.g. Freilassing).

Refer to the 2024 Tax Book

Mileage

Austrian tax law allows for tax-free mileage allowances for employees using their own vehicles for business purposes.

As with other business expense reimbursements, collective bargaining agreements play a crucial role in determining the specific rules and rates for mileage allowances. In the absence of a collective agreement, the federal wage tax regulation can be applied.

The 2025 mileage allowance amounts are as follows:

The mileage allowance for passenger cars may be paid for a maximum of 30,000 km per year without any wage tax deductions. As a rule, a vehicle log must be kept if payment of the mileage allowance is to be tax-exempt. It must contain the following:

• Date
• Mileage reading
• Number of kilometres travelled on business per day
• Point of departure and destination
• Purpose of each trip.

No further tax-exempt travel costs may be paid in addition to the mileage allowance.

The official mileage rate covers the following expenses:

• Depreciation/loss of value
• Fuel and oil
• Service and repair services due to ongoing operations
• Additional equipment (e.g. winter tires, snow chains, etc.)
• Car radio, navigation devices
• Taxes and fees
• Insurance (including comprehensive, passenger accident, legal expenses insurance)
• Membership fees (automobile clubs)
• Financing costs (loan or leasing installments)
• Parking fees
• Domestic and foreign tolls