The €55,000 threshold: when a Kleinunternehmer becomes VAT-liable
While your yearly turnover stays under €55,000 you add no VAT to invoices — and reclaim none on purchases. The threshold applies per calendar year, and that's where the nasty surprise usually starts.
What the €55,000 threshold means
The Kleinunternehmer rule exempts small turnover from VAT. You invoice without VAT and add the exemption note — but you also lose the input-VAT refund.
The tolerance up to €60,500
Once every five years you may exceed the threshold by 10 % — up to €60,500 — and keep the exemption. It's a buffer for one big project, not a permanent mode.
What happens if you go over
From the moment you exceed it you are VAT-liable: 20 % (or 10/13 %) goes on your invoices, plus a monthly or quarterly UVA. VAT you never charged clients has to be paid out of your own pocket.
The most expensive mistake is finding out about the overrun in March of the following year.
When waiving the exemption pays off
If you mostly work B2B and carry many VAT-bearing costs, voluntary Regelbesteuerung is often better: input VAT comes back, and your VAT is neutral for business clients. The waiver binds you for five years.
What to do in practice
Keep the yearly figure visible rather than in your head: once you pass roughly 80 % of the line, decide deliberately. Zvitly shows your turnover zone and speaks up before the threshold becomes a problem.
Common questions
Sources
Legal basis verified in RIS, the official Austrian legal information system. Current as of the article's update date.
Not tax advice. When in doubt, consult a Steuerberater.