Value added tax is technically a traffic tax because it is linked to an economic movement process (turnover = deliveries, other services). However, from a charging perspective, VAT is a consumption tax because it is charged to the one who uses income for consumption purposes.
Our WTS experts understand the challenges associated with indirect taxes. They support our clients by providing customised solutions in a highly dynamic environment. Increasing globalisation is forcing companies not only to keep an eye on Austrian VAT law, but also to take account of other VAT systems in Europe and the rest of the world.
In light of this, it is essential that companies meet the respective compliance requirements. Our advisory objective is to find legal ways to sustainably optimise the effective tax rate by means of appropriate VAT structures. In doing so, WTS takes globally oriented business models and the continual change in international tax legislation into consideration. Furthermore, due to the requirements of the VAT Directive (2006/112/EC), the case law of the European Court of Justice must also be considered. We pay special attention to the overlap between customs law and VAT law.
We establish legally secure VAT structures for our clients, review and optimise existing structures (holding and corporate structures), support and defend disputed case constellations - both at national (e.g. in the context of an external audit) and international level. We also look to ensure that the input tax deduction is guaranteed for our clients.
There are no bounds to our VAT activities. We advise both domestic and foreign companies and groups, media companies, SMEs, freelancers and tax consultant colleagues. We are of course also able to support you together with our VAT experts from the WTS Global network for questions relating to foreign VAT.
Advice on ongoing business operations
At WTS Austria our experts advise companies on all VAT issues relating to the national and international movement of goods, as well as on service-oriented business models and financial services. Furthermore, we assess and ensure the correct handling of chain and tripartite transactions. We check whether our clients are subject to VAT in foreign countries and give clear opinions and recommendations for action on any cases of doubt about VAT.
We assist with the preparation of external VAT audits and accompany our clients during appeals at the financial courts.
VAT compliance
Our WTS experts take over domestic registration obligations for our clients, prepare VAT returns and indirect tax returns and assist them with their input tax refund applications. Furthermore, we check incoming invoices with respect to domestic and foreign VAT and other invoice characteristics.
Transactions and restructuring
Our services also include advising clients on VAT issues that arise during transactions and restructuring. Our tax experts optimise holding structures with regard to VAT aspects, accompany outsourcing processes and carry out due diligence as part of company acquisitions.
Traffic taxes
The traffic taxes known in Austria include the motor vehicle tax, the standard consumption tax (NoVa), insurance tax and fire protection tax.
In addition to the diverse VAT issues for motor vehicles, a standard consumption tax is payable upon the first registration of vehicles in Austria. As soon as approval under automotive law becomes necessary, a standard consumption tax is due. This legal presumption of Sec. 79 of Austrian Motor Vehicle Law (KFG) is, however, refutable.
At WTS Austria we advise and represent clients in NoVA procedures and take over the obligation to notify direct imports of vehicles at the applicable financial administration. The same applies to the remaining traffic taxes.
