More and more Austrian companies purchase, sell and store goods across different EU Member States. One important point is often overlooked: having an Austrian VAT number does not automatically mean that one VAT registration is sufficient for all transactions within the EU.
For transactions involving goods, the physical movement of the goods is crucial: Where are the goods located? Where does the transport start? And in which country does it end?
When should an additional EU VAT registration be considered?
A foreign VAT registration should be reviewed in particular if your company:
- stores goods in another EU Member State;
- transfers its own stock from Austria to a warehouse abroad;
- purchases goods in one EU country but has them delivered directly to another Member State instead of Austria;
- sells goods directly from a foreign warehouse;
- carries out domestic supplies within another EU country;
- imports goods through one EU Member State and subsequently distributes them within Europe.
Example: An Austrian GmbH has an Austrian VAT number and purchases goods in Germany. However, the goods are shipped directly from Germany to a warehouse in the Czech Republic and never enter Austria. Such a transaction cannot simply be treated as an Austrian VAT transaction. The VAT consequences in the countries involved must be reviewed separately.
Foreign warehouses and fulfilment centres
Particular attention should be paid when using Amazon, fulfilment centres or other logistics warehouses in different EU Member States.
Moving your own stock from one EU country to another may itself trigger VAT consequences and potentially a VAT registration requirement in the destination country.
Does OSS solve the problem?
Sometimes – but not always.
The One Stop Shop (OSS) significantly simplifies VAT compliance for certain cross-border B2C sales within the EU by allowing businesses to report VAT due in several Member States through one central system.
However, OSS does not automatically replace local VAT registrations. Foreign stock, intra-Community acquisitions, transfers of own goods and certain domestic supplies may still create local VAT registration and reporting obligations.
Why do you need a local tax adviser or Fiscal Representative?
Obtaining a foreign VAT number is only the first step. Once registered, a company will normally have ongoing VAT compliance obligations in that country.
Depending on local legislation, these may include:
- monthly or quarterly VAT returns,
- annual VAT returns,
- reporting of intra-Community transactions,
- Intrastat reporting,
- review of purchase and sales invoices,
- communication with the local tax authorities.
Deadlines, reporting periods and formal requirements differ between EU Member States.
For this reason, the VAT structure should ideally be reviewed before the goods start moving, rather than after transactions have already taken place.
Our recommendation: If your goods are physically stored in another EU country or move directly between two Member States without entering Austria, check in advance whether your Austrian VAT number is sufficient or whether an additional VAT registration is required.
