Money in Austria: Banks, ATMs, Cards & Currency Exchange
Known as the land of beautiful Alpine mountains and decadent desserts, Austria has a fascinating history. When Turks fled Vienna in the 17th century, they...
Looking for a short weekend getaway? Look no further than Austria! Austria’s close distance from the UK makes it an easy choice for so many Brits. There are so many things to do and places to visit in Austria! From the charming, historic Old Towns to the breathtaking Ice Age valleys of the Central Alps, Austria is a destination worth exploring year-round!
Yet, your trip to Austria might come with a price tag considering that the cost in Austria is quite high. And paying a VAT of up to 20%, you might feel a bit intimidated. But don’t worry! As a British traveller, you could be eligible to claim back a portion of that VAT.
This article will detail everything you need to know about how to save on VAT in Austria, including the all-important question:how much is VAT in Austria?
And here’s a little bonus: use a Wise debit card to get your VAT refunds back to save even more! More on that later!
First things first, let’s break down the basics. The Value Added Tax (VAT) in Austria is called "Umsatzsteuer" and is abbreviated as USt. You might see either VAT or USt. on your invoices, but they refer to the same thing.
There are different tiers of USt in Austria as well. Generally, you are most likely to encounter the standard rate of 20% because this rate is applied to the majority of goods. Just like many other EU countries, Austria also has other reduced rates.
If you are still unsure about the tax rate applied to your purchase, refer to the table below for a quick check1:
Tier | Rate | Applicable goods |
---|---|---|
Standard rate | 20% | Majority of goods. |
First reduced rate | 13% | Cultural services and products; plants, firewood, live animals; animal food; art and antiques. |
Second reduced rate | 10% | Accommodation; campsites rentals; foodstuffs; a few beverages; books and newspapers; public transportation; medicine |
The standard VAT rate in Austria is 20% of the purchase price. However, you generally won’t receive the entire amount back, and it can be quite tricky to determine the exact VAT refund you will get in Austria in advance. Your actual VAT return may be less than expected due to the following factors:
As a result, you are likely to be reimbursed up to 15%2 of your original purchase price.
To be eligible for tax-free shopping in Austria, you must meet these conditions3:
.
There are several ways to obtain your VAT refund in Austria. You can either navigate the process yourself or engage the help of a tax refund agent. If you choose to work with an agent, you may need to download their mobile app to follow your VAT refund process.
If you prefer to handle the claim on your own, the procedures may vary slightly depending on the airport you’re flying from. For instance, at Vienna International Airport, the tax refund process is conducted digitally through the Digital Export Validation (DEV) system.3
There are also several steps you must follow before you can receive your VAT refund in Austria.
While you are in the store, purchasing your items, make sure to request a U34 form (export certificate) from the seller. You should check to make sure the information entered by the store personnel is accurate. The export certificate should have these information:
Don’t forget to ask them to staple the original invoice to the tax-free form. Without all of these paperworks, you will not be able to claim your vat returns in Austria.
The sales assistant may also request to see an officially recognized identity document to verify your eligibility, so remember to bring one (e.g., your passport) to enjoy your tax-free shopping in Austria.
If you are leaving from Austria directly to the UK, you should get your invoice stamped right at the airport in Austria.
When you arrive at the airport, head to the nearest customs office with the invoices, the goods, and the U34 form. If you meet all of the requirements, the Customs will help you to stamp the U34 form.
If you are travelling from Vienna International Airport, make your way to the DEV area to obtain a digital customs stamp. You can find designated DEV areas before the check-in gate (for checked luggage) and after the security check (for carry-on luggage). To get the digital stamp, connect your own smartphone to the DEV Wi-Fi or follow the instructions provided at the self-service DEV kiosks4.
Now you’re ready to claim your VAT refund in Austria! To complete the process, send all the validated U34 forms back to the seller. Most international airports have mailboxes for this. Your VAT refund will be credited back to the card you provided on the U34 form.
If you’re using a VAT refund agent, follow their specific instructions—some might require you to visit a designated counter.
So, that is it! This handy guide explains the steps to get your VAT refund back in Austria. You should read this article while heading to Austria. While the cost in Austria can be relatively high, getting your VAT returns is one effective way you don’t drain out your budget. But, you might want to know one more secret to save even more money!
When the denominated currency of the card (e.g., GBP) differs from the local currency (e.g., EUR), it will be automatically converted every time you swipe your card. So, keep in mind that you might be charged a conversation rate to receive your VAT refunds. Your bank will set this conversation rate, typically with a hidden markup! With all of these extra fees, your VAT returns in Austria might be less than you think!
The good news is that you can easily offset these fees with a Wise card. This card allows for auto-conversion on all your holiday spending at the mid-market rate for a small and transparent fee. If you plan to travel to another region, you can effortlessly switch to the local currency of over 40 countries—including EUR—using your Wise card.
So pack your bag, get your Wise card for a one-time fee of 7 GBP, and get ready to start your Austrian adventure today!
Please also be aware that tax rates and regulations may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance.
Sources used for this article:
Sources last checked on 20-Sep-2024.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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