Increase of the Small Business Threshold from 2025

As of January 1, 2025, the turnover threshold for small businesses as defined in § 6 para. 1 item 27 of the Austrian VAT Act (UStG 1994) will be increased from EUR 35,000.00 to EUR 55,000.00. This threshold has also been raised in § 21 para. 6 UStG 1994 in connection with the obligation to file a VAT return.

It is important to note that the EUR 55,000.00 limit refers to gross revenue, meaning that an implied VAT amount is already included in this threshold.

Due to the harmonization between VAT and income tax regulations, the new EUR 55,000.00 turnover limit will also apply to the flat-rate small business taxation under § 17 para. 3a of the Austrian Income Tax Act (EStG 1988).