Cross-Border Passenger Transport Services
Examples for the application of Austrian VAT referring to cross-border passenger transport in buses, cars or taxis in or through Austria are available on this page.
An entrepreneur's country of origin is not relevant in the context of value added tax (VAT). Passenger transport services between Austria and the EU are taxed identically to passenger transport between Austria and a third country. Cross-border passenger transport can be carried out by buses and cars (taxis) operating on occasional or regular basis.
Only the proportional fee (the fee, which is allotted to the Austrian part of the transport route) of the passenger transport service is subject to Austrian VAT. If a lump-sum fee has been agreed for the entire transport service, the fee has to be determined in proportion to the route taken within the Austrian territory in relation to the total transport route. Another apportioning, for instance, according to the duration of the stay or in relation to the costs incurred per country, is inadmissible. The rate of taxation for passenger transport is 10%.
Example for the Calculation of Austrian VAT
Transport service from the Czech Republic via Austria to Hungary. 170 kilometres are covered within the Czech Republic, 110 km within Austria, 90 within Hungary (total number of kilometres 370, fee EUR 3,200 ). The total transport fee is to be divided by the total number of kilometres; the sum obtained is to be multiplied by the number of kilometres covered in Austria. The result provides the basis for the assessment of 10% Austrian VAT .
EUR 3,200 : 370 km = 8.64864
8.65 x 110 km = 951.35
Fee in Austria: EUR 951.35
Austrian VAT 10 % EUR 95.14
If you are a foreign entrepreneur (i.e. not registered or with no fixed establishment in Austria) and the transport service is provided to another entrepreneur (B2B) or an (Austrian) public law entity, the following applies:
The assessment basis for tax is the fee for the part of the transport service provided within the Austrian territory. Turnover is subject to tax in Austria, the so called „reverse charge procedure“ according to Sec. 19 (1) VAT Act 1994 is applicable. In addition to the general invoice rules according to Sec. 11 (1) VAT Act 1994, invoices have to include the VAT identification number of the recipient of the service and a reference to the shift of the tax liability (Sec. 19 VAT Act 1994).
The VAT must not be indicated separately; otherwise the service supplier, beside the recipient of the service, who in this case is also the tax debtor, is liable for the invoicing. Such falsely invoiced VAT does not entitle the deduction of input VAT. The service supplier is liable for the Austrian VAT.
If you are a foreign entrepreneur and if you provide transport services to private individuals (B2C), the following applies:
Assessment basis for tax is the fee for the part of the transport service provided within the Austrian territory. The rate of taxation for passenger transport is 10 %. The foreign entrepreneur has to calculate the Austrian VAT, indicate it on the invoice and pay it to the Tax Authority Austria – local office Graz-Stadt; registration and assessment for VAT have to be made at the Graz-Stadt local office as well.
It should be noted that compliance with the customs and tax regulations can be subject to checks by the Austrian authorities and the basis for the customs and tax duties can be estimated by them.
Since 1 January 2023 the VAT rate for cross-border passenger transport by train is set at 0%. Therefore, the proportional fee (the fee, which is allotted to the Austrian part of the transport route) of the passenger transport services is exempted. Nevertheless, the railway companies have the right to deduct input VAT.
This measure was introduced for ecological reasons and to equalize the VAT treatment of cross-border passenger treatment services by air, water and railway.