According to the small business VAT regulation in Austria entrepreneurs whose turnover doesn’t exceed EUR 30.000 (net) in one assessment period are exempted from VAT. If this threshold is exceeded once in five years by not more than 15 % it doesn’t affect the exemption.
They can declare in written form until the enforceability of the decision of the relevant year to waive the exemption. This waiver is binding for at least five years. On January 1st 2017 two amendments of the small business regulation came into effect.
Turnover Calculation
Before 2017 the whole turnover except auxiliary transactions and the transfer of an entire business was taken into account. Since 2017 also several categories of transactions who are exempted from VAT don’t affect the threshold.
Example: A medical doctor earns EUR 100.000 from his provision of medical care in the exercise of the medical and paramedical professions and EUR 10.000 from lecturing. Medical care is tax exempted, lecturing subject to VAT.
Before 2017 the earnings of both activities were totaled, so the sum was EUR 110.000. As this sum exceeds the threshold, EUR 10.000 from lecturing were subject to VAT.
Since 2017 only EUR 10.000 are relevant. As the turnover from lecturing doesn’t exceed the threshold of EUR 30.000, lecturing is falling within the scope of the small business regulation and is therefore VAT exempted.