Tax and compliance in Austria, how your business account fits in

Snapshot

A business account in Austria is not a tax in itself, but it underpins your tax records. Clean bank records support your VAT reporting, and the federal fiscal code generally requires business records to be kept for at least seven years.

VAT threshold: The Kleinunternehmer exemption applies up to EUR 55,000 of annual turnover from 2025, up from EUR 35,000. Standard VAT rate is 20 percent. As of 10 February 2026.
Record keeping: Keep books, records, and supporting documents for at least seven years under the Bundesabgabenordnung.
Separate account: Generally required for a GmbH, strongly helpful for sole traders and freelancers.
Most providers: Offer statements and accounting feeds that aid compliance

Fees and features as of 10 February 2026Last reviewed 10 February 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

In Austria your business account is the backbone of your tax records rather than a tax obligation on its own. Small businesses can use the Kleinunternehmer VAT exemption, which from 2025 applies up to EUR 55,000 of annual turnover, up from EUR 35,000 before. Above that you charge VAT at the standard rate of 20 percent, report it to the Finanzamt, and need a UID number. The federal fiscal code, the Bundesabgabenordnung, generally requires records, including bank records, to be kept for at least seven years. A separate business account makes this far easier. This is general information, so verify your position with the Finanzamt or a tax adviser.

How a business account relates to tax in Austria

The account itself does not create a tax, but it produces the records that tax compliance relies on. The main turnover tax is the Umsatzsteuer, or VAT, administered by the Finanzamt. Small businesses can apply the Kleinunternehmer exemption, which from 2025 covers annual turnover up to EUR 55,000, raised from EUR 35,000. Above the limit you charge VAT, currently at a standard rate of 20 percent, file VAT returns, and need a UID number, the Austrian VAT identification number that begins with ATU. Companies also pay corporate income tax, the Körperschaftsteuer, at 23 percent, while sole traders and freelancers pay personal income tax. As of 10 February 2026.

VAT and reporting

Once over the Kleinunternehmer limit, a business charges VAT on its sales and files VAT returns to report and pay what is owed and to reclaim input VAT. The figures on a VAT return are substantiated by your records, so clean and complete bank records make reporting more reliable. As of 10 February 2026. Verify the current rules with the Finanzamt.

Record keeping

The Bundesabgabenordnung generally requires businesses to keep books, records, and supporting documents for at least seven years, counted from the end of the year of the last entry, with a longer period for documents tied to real property. Mixing business and personal money in one account complicates record keeping and VAT attribution, which is why a separate business account is recommended and is generally required for a GmbH as a separate legal person. As of 10 February 2026.

What to keep on top of

For tax and compliance tied to your business account in Austria, watch these, as of 10 February 2026. Verify with the Finanzamt

Whether your turnover has reached the Kleinunternehmer limit, and registering for VAT and a UID number when it does.
Filing your VAT returns on time and keeping the records that support them.
Keeping books, bank records, and invoices for at least seven years, ideally with an accounting feed from your account.

How to keep your account compliant

Keep business money in a dedicated business account, separate from personal funds.
Connect your account to accounting software so transactions feed your VAT and bookkeeping records.
Confirm your obligations with the Finanzamt or a tax adviser, since thresholds and rules can change.

Compare business accounts available in Austria

These providers accept business customers in Austria. Fees and eligibility shown as of 10 February 2026. Confirm current terms with the provider before applying.

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Questions about tax and compliance in Austria

When must an Austrian business register for VAT?

Businesses below the small business limit can use the Kleinunternehmer exemption, which from 2025 applies up to EUR 55,000 of annual turnover, up from EUR 35,000 before. Above that you charge VAT, currently at a standard rate of 20 percent, and you need a UID number. As of 10 February 2026. Verify with the Finanzamt.

How long must business records be kept in Austria?

Under the federal fiscal code, the Bundesabgabenordnung, business books, records, and supporting documents must generally be kept for at least seven years, and longer for documents tied to real property or open proceedings. As of 10 February 2026. Verify the current rules with the Finanzamt.

Do you need a separate business bank account for tax in Austria?

A GmbH generally needs its own account because it is a separate legal person, while a sole trader or freelancer is not always required to have one. A separate business account makes record keeping and VAT reporting easier, and mixed accounts complicate compliance. As of 10 February 2026. Verify your situation with a tax adviser.

What is a UID number?

A UID number is the Austrian VAT identification number, beginning with the prefix ATU. VAT registered businesses use it on invoices and for cross border trade within the European Union. Clear bank records support the VAT figures you report. As of 10 February 2026. Verify with the Finanzamt.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 10 February 2026. Confirm current terms with the provider before applying.