E-Invoicing in Austria – the Most Important Information Summarized
Published: January 30, 2025
Reading Time: 6 min
In January 2014, mandatory electronic invoicing was introduced for the federal government and public administration. Since then, many companies in Austria have begun to digitize their invoicing processes. However, e-invoicing is not yet mandatory across the board in Austria. We will show you what the advantages of electronic invoices are and what technical requirements are necessary.
What is an E-Invoice and What Advantages Does it Offer?
An e-invoice (electronic invoice) is an invoice that is created, transmitted and received in a standardized electronic format. In contrast to a traditional paper invoice or invoice sent by email, an e-invoice can be processed automatically. This makes business processes much more efficient and cost-effective. The content and format of the e-invoice data record are standardized throughout Europe by EN16931.
The advantages of an e-invoice at a glance:
- Precise and fast processing: As the data is transferred automatically, the error rate is reduced. In addition, the processing times for receipts are significantly shortened, making it easier to meet discount deadlines and process transactions faster, for example.
- Transparency: All invoices and associated information can be accessed centrally in one place by all authorized persons. This gives the people in charge across all departments a complete overview of the status quo, as well as precise communication and processing options.
- Efficient use of resources: The process of creating, transmitting and processing invoices is significantly accelerated by digital solutions. E-invoices allow your employees to focus on more important and complex tasks.
- Sustainability: e-invoices eliminate the paper, printing and physical mailing of letters. Approval processes can be carried out digitally and flexibly, regardless of location. With the right, legally compliant solution, electronic invoices can also be archived digitally.
What is ViDa?
ViDa is the abbreviation for VAT in the Digital Age. This European Commission initiative aims to adapt the European VAT system to the high level of digitalization in the economy.
Digital solutions for VAT are intended to give companies and tax authorities a better overview of transactions. This will make transactions more transparent overall and make it easier to combat tax fraud. ViDa also focuses on reducing the administrative burden for companies. To this end, simpler procedures for complying with VAT regulations will be introduced.
Is Electronic Invoicing Mandatory in Austria?
In Austria, electronic invoicing (e-invoicing) is currently only mandatory for the federal government and public administration. In Germany, e-invoicing has been mandatory for B2B transactions since January 1, 2025 with transitional regulations until 2028.
This e-invoicing obligation in Germany also has an impact on Austrian companies. German companies will increasingly insist that their foreign business partners also switch to electronic invoicing. This is the only way to avoid parallel invoicing processes and make the most of the benefits of the investment already made in an e-invoicing system. Generally speaking, the more European countries introduce mandatory electronic invoicing, the more important it will be for Austrian companies to make the necessary adjustments. And: the introduction of a B2B obligation is also to be expected in Austria in the medium term.
In addition, Austrian companies with a branch in Germany must of course also comply with the legal regulations applicable there.
Given the currently varying conditions in the EU countries, it is advisable to use a suitable transitional solution for processing different (e-)invoice formats. In this way, the process can be standardized easily within your own company, regardless of external factors.
Electronic Invoicing to the Federal Government and Public Administration
E-invoicing has also long been an integral part of Austria. Since January 1, 2014, only electronic invoices can be sent to federal government departments. This is also regulated by law, namely in the ICT Consolidation Act of 2012. The federal departments comprise a total of around 1,700 departments. These include all federal ministries and their departments, parliament and the Court of Audit.
Anyone wishing to submit an invoice to the federal government or public administration must therefore do so electronically using a structured data format. PDF invoices cannot be used in this case; they will be rejected.
We will show you step by step how you can issue e-invoices to the federal government or public administration:
Digital reporting obligation: create, submit and store e-invoices
In Austria, e-invoicing is currently only mandatory for deliveries and services to the federal government and many public institutions. Nevertheless, many other companies in the B2B sector have already switched to electronic invoices.
Companies that want to issue invoices electronically and have a long-term solution that also makes sense abroad must choose a format that meets all the necessary requirements for e-invoicing. These are currently, for example, the two formats XRechnung and ZUGFeRD from version 2.0.1. There may also be other compatible formats. It is important that these can extract the required information correctly and completely from the agreed format in such a way that they comply with EN16931 or are interoperable with it.
There is a legal archiving obligation for e-invoices in the same way as for physical invoices. Once an e-invoice has been issued, it must therefore be stored. According to the Value Added Tax Act, e-invoices must be stored for 7 years. With a suitable archiving system, such as AuditProof, this can be done digitally without media discontinuity.