Social Insurance / Taxes

As a freelance or “new self-employed” worker (neue:r Selbstständige:r”), you are required to register your professional activity with the SVS (the insurance institution for self-employed persons) within a month of beginning it, via this online registration form. The amount of income (earnings minus expenses) does not play a role. If the minimum income triggering a social insurance responsibility is not reached in the calendar year, you do not need to register yourself as having exceeded the amount (“Überschreitungserklärung”). In this case, you have registered your self-employment, but – until further action – you do not have health, accident, or pension insurance for this employment.

1. Income from a trade and/or self-employed work.

2. No pre-existing mandatory insurance (for instance, based on a freelance contract) according to the Austrian general social insurance law, ASVG).

3. The income (referred to as Beitragsgrundlage, “basis for contribution”) exceeds the minimum for mandatory insurance and/or income exceeding this amount is registered in the insurance declaration. This applies only to occupational groups subject to the GSVG, the social insurance law governing self-employed persons.

As soon as your income exceeds a certain amount, you are subject to social insurance law and required to pay social insurance contributions. At this point, you must register yourself as having exceeded the amount (“Überschreitungserklärung”) and register with the SVS via the online registration form – the GSVG requires self-employed persons to register and deregister themselves. Since the exact income of self-employed workers can only be determined in retrospect, the registration serves as the basis of insurance.

The minimum income for mandatory insurance for 2026 is € 6,613.20 (as 2025), regardless of whether you have income from other sources – other jobs, pensions, health, unemployment, child-care benefits, etc. Accident benefits are not considered employment.

Of course, it is not always possible to determine at the beginning of the year whether your self-employed income (minus business deductions) will exceed the minimum amount. As soon as this becomes clear – at the latest, when your tax return is prepared – you should register the fact with the SVS. That will allow you to avoid a 9.3% surcharge; however, you do have to pay the contributions for the entire year.

The GSVG assumes self-employment for the entire year; it does not recognize interruptions for any reason, including interruptions due to marginal or short-term fixed employment. However, since 2011, it is possible to register a suspension of self-employed artistic work with the KSVF, the Artists’ Social Insurance Fund. This suspension interrupts the mandatory insurance, freeing the employee from responsibilities to the SVS for the period of the suspension.

The income used to calculate your social insurance contribution is your annual income from self-employed work minus business expenses – in other words, the sum listed as “earnings” (Gewinn) on your income tax return. Each insurance institution counts only its own contributions; these are generally deducted as business expenses. By law, the tax authority’s income data on all self-employed persons must be transferred to the SVS; this data tells the SVS (at most 3 years later) your income from self-employment. Artists and other self-employed persons who are subject to mandatory insurance but have failed to register will receive a bill for the relevant years including a surcharge of 9.3%.

In the absence of an income tax return – i.e. if the income is below the level required to file a return – the SVS charges a provisional minimum contribution. As soon as a tax return is filed, the SVS will correct the contribution retrospectively, which can lead to you receiving money back or having to pay an additional amount. The same process is used to correct current contributions, which can lead to higher costs – the money owed for previous years plus the contribution for the current year. These corrections take place annually. As of 2026, the current contribution for health insurance is 6.8% of the contribution basis (earnings), for pension insurance 18.5%, and for self-employment pension provision1.53%. The accident insurance contribution is a fixed amount and remains the same regardless of income. In 2026, it will be €12.95 per month.

If you fulfill certain criteria, you can apply to the Artists’ Social Insurance Fund (KSVF) to subsidize your health, pension, and accident insurance. The maximum subsidy possible is €1,896 per year.

Under the definition of the Artist’s Social Insurance Fund Law (K-SVFG), an artist is anyone who, “due to their artistic abilities and as part of an artistic process, creates works of art in the fields of visual art, performing arts, music, literature, film, or one of the contemporary forms.” An artists’ commission decides whether an applicant meets the conditions; this commission is composed of various subcommittees, one for each of the artistic fields named in the law. In disputed cases, an appeal for a further assessment by a special committee can be made.

In addition to the fulfillment of “artist” status, an applicant must:

• Have mandatory health, pension, and accident insurance as a “new self-employed” person
• Have at least €6,613.20 (2025, 2026) total annual income from artistic work (including arts-related work) in Austria and internationally (however, this requirement can in certain situations be omitted or eased by spreading the income over multiple years)
• Not have a complete income of more than €35,821.50 per year (2025, 2026). In calendar years in which a child is entitled to family allowance, this limit is increased by six times the applicable marginal earnings threshold per child. (This condition is also met if the other parent is entitled to family allowance for this child, for example.)

The application can be submitted not only for the current calendar year, but also retroactively for four calendar years. Specifically, in the calendar year 2026, this also applies to the calendar years 2022, 2023, 2024, and 2025. The application for the calendar year 2022 must be received by the KSVF by 31. Dezember 2026.

Further information and application form: Künstler-Sozialversicherungsfonds (German).

If your income does not exceed the minimum, you can still inform the SVS that you wish to be insured against illness and accidents. The basis for contribution for health insurance in this case is the minimum income for mandatory insurance; as of 2026, accident insurance costs €12.95 per month. “Opting-in” health insurance begins on the day of registration. This option does not include pension insurance and is not eligible for KSVF subsidies.

If your income tax return reveals income above the minimum level but you have not registered as self-employed, mandatory insurance begins retroactively at the beginning of the calendar year. This date can only be changed if you can prove to the SVS that the self-employed activity began at a later date.

You can end your mandatory insurance by submitting a written Abmeldung von der Kranken- und Pensionsversicherung bzw. Unfallversicherung (German PDF) to the SVS registering the end of your self-employed activities. This is only possible if you have ended your activities as an artist or your income from those activities, after deductions, falls below the minimum. In this case, insurance ends with the last day of the month. There is no reimbursement of contributions, since you were protected by health insurance and your contributions to pension insurance remain for your future pension. The conclusion of your activity as a self-employed artist ends the requirement to be insured as such. Any income from royalties stemming from previous, active years do not trigger the insurance requirement.

It is also possible to be registered with multiple mandatory insurances; the state considers complete annual income, even if it is derived from multiple classes (for instance, both salaried and self-employed income).

Starting in 2011, support for artists in social insurance questions has improved. The SVS has an artist service center in each of its regional offices; these represent the contact point for all questions, information, and assistance.

The addresses and opening hours of the regional centers are here:

• Provision of information on
  • Existing insurance relationships and their legal effects (which institution they are insured with, under which law, etc.);
  • The effects of insurance relationships on contributions
  • The insured persons’ service provided by the competent social insurance institutions and the service provided by the
  • Artists’ Social Insurance Fund (KSVF)
  • the registration procedure for the respective insurance relationship
  • the eligibility requirements for social insurance benefits
  • general questions regarding the procedure before the insurance providers and the Artists’ Social Insurance Fund (KSVF)
  • applications for unemployment insurance benefits

• Support with regard to the registration and information obligations under Sections 18 to 22;
• Receipt and forwarding of applications for all types of social insurance benefits, voluntary insurance, reimbursement of contributions, differential contribution assessments, determination of insurance periods and determination of insurance obligations;
• Receipt and forwarding of applications under the K-SVFG

The service centers are also authorized to accept social insurance-related applications of all kinds, such as pension applications. Even if the SVS itself is not the relevant authority, they will forward the application to the relevant insurance institution. Applications of all kinds to the KSVF are also accepted and forwarded.

However, the legal regulations currently in force and the responsibilities and tasks of the insurance carriers, including the Austrian Public Employment Service (AMS) and the Artists’ Social Insurance Fund (KSVF), remain unchanged. Applications for benefits under the Unemployment Insurance Act must still be submitted directly to the AMS.

Since 1 January 2001, all artists are subject to mandatory insurance via the SVS (known until 2020 as the SVA) as “new self-employed persons” (Neue Selbstständige) according to §2(1)4 of the Commercial Social Insurance Law (Gewerblichen Sozialversicherungsgesetz, GSVG). That includes musicians beginning their professional career after 1 January 2001, as well as those who, due to an increase in income, must register with the insurance and tax authorities.

Since 1 January 2008, together with health insurance, a termination contribution of 1.53% of income applies to all self-employed persons, including musicians, those working in music-related areas such as recording studios and music publishers, and so-called “Independent contractors” (Freie Dienstnehmer). The contributions are prescribed with health insurance through the SVS and are forwarded to a business provident fund, (Betriebliche Vorsorgekasse, BVK).

Since 1 January 2009, self-employed persons can also choose to take out unemployment insurance (Freiwillige Arbeitslosenversicherung). Anyone who was previously employed under contract and has recourse to unemployment benefits from that job can retain that right at no cost for as long as the self-employment continues.

Until 1 January 2015, a higher minimum income for mandatory insurance for new self-employed persons and a lower minimum for supplementary work existed; since 1 January 2016, only the lower minimum income level exists: €6,613.20 per year or €551.10 per month (2026, 2025 ), regardless of whether income from other sources is also present – the total income from all sources combined is considered the contribution basis.

• Brochures and info sheets on all subjects related to the SVS
• Insurance for “new self-employed” and freelance workers (PDF)
• Austrian Cultural Council: Guideline for applying to the KSVF (PDF)

Self-employed activity by musicians leads to taxable income. You are required to register self-employed activity with your local tax authority (Finanzamt) within a month of beginning the activity. After registering, you will be issued a tax ID number; registration as an artist for tax purposes requires artistic capability, a quality you are considered to possess if you have completed a university-level artistic course of study.

Earnings (Gewinne) are generally determined by means of an income/expense calculation. All business-related activities leading to income or expenditures should be recorded in an orderly, complete, correct, and timely manner.

The calculation is governed on inflow/outflow basis: the point of time at which money is transferred dictates the time it should be recorded and the relevance for taxes. The acquisition of capital assets is an exception to this rule.

At the end of the year, the income and expenses incurred in the course of the year are added up, with business expenses categorized. Your income minus business expenses yields the earnings.

Income includes

• Fees you charge for private music lessons, musical performances, or recordings
• Money from sponsoring
• Selling of assets
• Fees for activities as an expert, author, or speaker
• Money received for business interruption insurance
• Business-related physical assets used for private purposes; also partial private usage (for instance, using your car for both business and private travel). *These can also be calculated by reducing the business expenses accordingly.

Interest and dividend payments falling under the 25%/27.5% withholding tax (KESt) do not count as income.

Fundings: According to §3 Z 3 lit b EstG (tax law), “Financial support from public assets or from a public or private foundation intended for the direct support of the arts (reimbursement of expenditures or disbursements)” are tax-free. However, this status only applies to grants and subsidies with no directly offsetting activity – for instance, stipends or composition grants, for which you are not required to provide receipts as proof to the funding body. This kind of income does not need to be included in the tax return. Grants and other contributions relating to artistic activity from the SKE Funds of the copyright protection agencies are also tax-free. However, the expenses relating to the artistic activity for which the money was granted can only be included above the amount of the grant – in other words, if you received a grant to cover the costs of a project, you cannot also deduct the costs for which the grant was used.

All other public subsidies for which you are required to provide proof of expenses in the same or greater amount – for instance, project grants – must be included in both the income and expense sections of the tax return.

Value-added tax (Umsatzsteuer): A grant is VAT-free if no offsetting activity takes place – if it is not exchanged for a service. Subsidies intended solely for the defraying of costs – i.e. to help cover business losses – are also not subject to VAT; however, no input tax deduction (Vorsteuer) can be applied to the losses covered.

The border between public and private funds is often hard to discern and must be decided on a case-by-case basis, often with the help of a tax professional. You can apply to divide your earnings evenly among the previous three calendar years; this measure is helpful when you begin to earn more money for the first time.

All the expenses incurred in the course of self-employed (artistic) work and are connected commercially with that activity can be deducted as business expenses; this reduces the earnings and thus the basis for calculating your income tax.

Here are a few examples:

Work room/practice room in an apartment

Home offices located within the home are deductible if they form the center of professional or business activities. This means that these rooms are absolutely necessary for the performance of the activity and that the activity is carried out exclusively or predominantly in this room. In its ruling GZ 2006/13/0055 of 23. Juli 2007, the Administrative Court stated that “the voice of an opera singer (…) – comparable to a musician practicing on their instrument (see also VwGH 24.06.2004, 2001/14/0150) – requires regular and time-consuming practice.” It was therefore determined that a study constitutes the center of the activity because the vast majority of the gainful activity is carried out there in terms of income generated and time spent.

Concert pianists

The professional activities of a concert pianist require a level of musicianship that can only be attained and maintained through regular work at the instrument. As such, “practicing and rehearsing” are not limited to learning a specific piece or the program for a specific concert, but require regular, long-term playing of the instrument in order to maintain and improve musicianship. As such, the center of a concert pianist’s professional activities is assumed to be the location at which they spend the most time at their instrument, and the costs of that room are tax-deductible.

Orchestra musicians

The previous description also applies to orchestra musicians, especially since their activities include intensive rehearsal.

Music teachers

In the view of the tax authorities, the preparation and correction activities of a music teacher are not comparable to the practice of a musician; as such, a work room for this purpose cannot be deducted.

If the work room is used for multiple, closely connected activities, a determination of the primary source of income is necessary, and whether that income renders a work room absolutely necessary. If the various activities are not connected, each activity must be considered individually as to the necessity of the work room.

Work room – deductible expenses

Relevant percentage of rent and utility expenses, energy (electric, gas, heating), depreciation, financing, equipment, household insurance.

Non-deductible expenses

If a work room is not accepted as such by the tax authorities, equipment used to make the room livable (desk and chair, shelves and cabinets, lamps, carpets, decoration, etc.) may not be deducted, even if they are used for the business.

No restriction

Restrictions on the deductibility of a work room do not apply to rooms in an apartment that, due to their use and furnishings, clearly belong to the work sphere of the taxable person, such as acoustically treated rehearsal rooms.

Flat rate

Since 2022, under certain conditions, a so-called “large” (€1200) or “small” (€300, in cases where income from other sources is less than €13,359 as of 2026; 2025: €13,308) flat rate can be deducted for work area-related expenses within an apartment. This flat rate can be added to the standard/small enterprise deduction. In addition to the small flat rate of €300, expenses for ergonomic office furniture (desk, office chair, lighting) of up to €300 can also be deducted as business expenses (€600 total). Expenses for work equipment such as computers, printers, etc. can be additionally deducted in both cases.

Educational and retraining expenses

Educational and retraining expenses relating to the taxable professional activity or to a closely related activity can be deducted (studies at a technical college, university classes or course of study, master classes). Educational costs relating to one’s private life (development of personality, sports, esoterica, class B driver’s license) are not deductible. Deductible costs include course fees, teaching aids, travel, and accommodation.

Consultation costs

These include tax advice, bookkeeping, accounting, and legal costs.

Seminars and professional development

Costs for the improvement of existing professional knowledge and abilities, including seminars, course fees (possible reimbursement if the 14-month marginal rate is exceeded), if these are primarily for business purposes.

Work clothing

This category is strictly limited and requires the inclusion of the specific performance and purchase at special stage equipment stores, especially in the case of stage makeup.

Business insurance

Includes liability, legal, instrument, office, and work interruption insurance.

Business taxes

Includes property taxes for a business property and auto insurance for a company car.

Hospitality costs

• 100% deductible: employee education, etc.
• 50% deductible: meals with business associates for the purpose of business initiation
• Not deductible: hospitality for personal reasons, such as a birthday

Miscellaneous materials

Includes sheet music and instrument maintenance costs, such as strings.

IT costs

Including software licenses, internet costs, and investments.

Technical literature

Deductible if it has a direct relationship to the musician’s activities: periodicals, books, CD-ROM, albums, DVDs.

Financing costs

Including interest on business assets and exchange rate differences in the case of foreign currency loans (deductible at the time of repayment or conversion to euros).

Tax-free profit allowance (Gewinnfreibetrag)

The tax-free profit allowance applies to all forms of business income and earnings determination (income/expenditure calculations and balance sheets). This allowance consists of two parts:

1.) 15% allowance for profits up to €33,000 (before 2024: €30,000)

15% percent of profits up to €33,000 is tax-free, regardless of investments – in other words, max. €4,950 (before 2021 13% or €3,900).

2.) Conditional allowance for profits over €33,000 (before 2024: €30,000)

In order to apply the allowance to profits exceeding €33,000, investment in business assets must be shown. This part of the allowance is referred to as the “investment-conditional” profit allowance. Applicable investments included new, depreciable movable assets with an operating life of at least 4 years (for instance, instruments, business and commercial equipment, computer equipment). Automobiles, immediately deductible business purchases, and used equipment cannot be applied.

Additional applicable investments include housing bonds with a term of more than four years: the purchase of these securities in the optimal amount before the end of the calendar year is thus the simplest way to take advantage of the conditional profit allowance. If the 4-year holding period is not observed, the profit allowance will be taxed retroactively. This retroactive taxation does not apply if fixed assets are purchased in place of the bonds. In short: it is advisable to calculate your profit for the year toward the end of the calendar year in order to best take advantage of the profit allowance.

TIP: The profit allowance also reduces your social insurance contribution basis.

Maintenance costs

Instrument repair and maintenance, including piano tuning, rehairing of bows, etc.

Investment in fixed assets

• Investment in assets meant to benefit the business longer than one year.
• Registration: Deduction (AfA) spread over the estimated use life of the asset.
• Alternative: leasing (including financing costs)
• Low-value assets (up to €1,000) are immediately deductible

Investment examples

• Adaptation of a property (renovations), including in rental properties
• Purchase of a property for music lessons or rehearsal space (must be a complete property)
• Automobile (if not leased; usage must be at least 50% business-related). Operating life: 8 years.
• Exceptions: trucks and small buses

Automobile costs

Up to the “luxury limit” of €40,000 new, including VAT and the standard consumption tax (€55,000 from 2026).

• Rental/leasing or
• Deduction (8 years; see “Investment in fixed assets”)
• Insurance, operating costs, repairs (including accident-related)

Alternatively: if business use is less than 50%, the percentage of business use can be deducted, or in the form of a mileage allowance (Kilometergeld): €0.50/km up to 30,000km annually; a travel log for business and private travel must be kept, including the date, duration, mileage, distance traveled, and purpose of travel.

Mileage allowance as a passenger: €0.15/km (2024: €0.05/km)

Mileage allowance for bicycles and e-bikes up to 3.000km as of 1 July 2025: €0.25/km (1.1.-30.6.2025: €0.50/km)

Mileage allowance for motorcycles as of 1 July 2025: €0,25/km (1.1. bis 30.6.2025: € 0,50/km)

Copying costs

Rent

Including equipment and instrument rental or leasing.

Personnel costs (for employees):

• Wages & salaries
• Social insurance costs
• Municipal tax (3%), employer contribution (3.9%; from 1.1.2025 3.7% possible upon request)
• Severance pay provision (1.53% contribution to the employee pension insurance fund)
• Other personnel costs

Mandatory social insurance contributions (SVS):

Pension, health, and accident insurance, as well as contributions to the self-employed pension insurance fund.

Commissions

Deductible if the payment is business-related. The amount must be substantiated.

Travel costs

• Taxi, train, bus, etc.
• When travel is more than 25 km, a daily allowance for meals can be deducted (€30 per day in Austria)
• Accommodations: hotel receipts or daily allowance (€17 per night in Austria)
• International daily allowances for room and board according to the tax authority’s list

Donations

Donations by private persons (special expenses) or businesses (business sector) up to 10% of income or profits for the fiscal year can be deducted. The donations must be to a charitable organization recognized by the Ministry of Finance (current listing at www.bmf.gv.at).

Since 2017, private donations are automatically registered with the tax authority by the charitable organization. To this end, the legal name (as it appears on the Meldezettel) and date of birth must be transmitted to the donation recipient. This automatic registration does not take place if the donation comes from a business.

Note: The automatic transfer of donation amounts by the recipient of the donation does not affect the operational area.

Sponsorship payments

Must include a written contract, actual advertisement (display of the sponsor’s name), sporting associations, cultural events.

Fines

Fines cannot be deducted!

Telephone and postage costs

Advertisement

Advertisement for business purposes – for example, in newspapers or magazines – are deductible.

• Records of business income and expenses must be recorded; these can be simplified in case of a standard deduction or allowance.
• Purchase book, including if goods are sold
• Register of assets
• Payroll account for employees

Option A) For business expenses

If revenue for the previous year did not exceed €220,000 and no voluntary accounting is done, instrumental teachers may deduct a flat rate of 6% of revenues (max. €13,200 per year). Artists can deduct 15% of revenues in 2026 (max. €26,400/yr.; 2025: 13,5%; until 2024: 12%).

Additionally

• Personnel costs
• Subcontracting commissions and fees (not applicable to secretarial work)
• Mandatory social insurance contributions

If the requirements for a flat-rate deduction are met, the input tax flat rate (1.8% of net revenue, up to €3,960) may also be applied.

Caution: If applying the business expense flat rate, the tax-free profit allowance can only be applied up to €4,950; the investment-conditional profit allowance cannot be applied. Thus, it may be advisable to take the individual business expense deductions!

Option B) Artists’ flat rate

Artists can deduct a flat rate of 12% of revenues as business expenses, max. €8,725 per year.

Deductions included:

• Expenses for standard technical equipment, especially computers, CDs, DVDs, and recording and playback devices.
• Telephone and office supplies
• Technical literature and tickets (concerts, etc.)
• Business-related clothing, cosmetics, and other products pertaining to appearance
• Food expenses (daily rates)
• Expenses for work rooms in a living space (atelier, recording studio, rehearsal room)
• Hospitality costs for business partners
• Standard but non-verifiable business expenses

Additionally deductible:

• Educational and training costs
• Musical instruments
• Business travel costs (including accommodations)
• Commissions
• Advertising
• Legal and consultation costs
• Personnel costs
• Art materials
• Social insurance contributions
• Profit-free allowance, max. €4,950
• Input tax on the flat rate: 12% of the flat rate, max. €1,047 in the case of non-VAT-taxable revenues

Commercial flat rate for salaried musicians

5% of the tax base, up to €2,628 per year. The tax base consists of gross income minus tax-free and other income. This flat rate does not apply to music teachers!

Commuter allowance (Pendlerförderung)

The costs of travel between home and workplace are covered by the transportation deduction, which applies to active workers regardless of their actual travel costs. An additional small or large commuter allowance can be claimed as a commercial cost if

• the one-way journey is more than 20 km and mass transit can reasonably be used (small allowance), or
• if the one-way journey is more than 2 km and mass transit cannot reasonably be used, or the taxpayer has a handicap such as blindness (large allowance)

The allowance can also be claimed aliquot for part-time workers traveling to their workplace only once or twice a week.

“Pendlereuro”

The “commuter euro” (€2 per year for each kilometer of the one-way trip between home and workplace) can be claimed provided that the worker is eligible for the commuter allowance. Eligibility for both must be calculated using the tax authority’s calculation tool at https://www.bmf.gv.at/pendlerrechner/.

Additional options include the Jobticket and Pendlerzuschlag.

Pensions & long-term costs

• Later purchase of insurance periods: school and university periods
• Church taxes (max. €600/year; until 2024 max. €400/year)
• Tax advisory costs (if not deducted as business expenses
• Donations (if not deducted as business expenses)
• Loss deductions and losses carried forward

Automatic registration: certain expenses must be communicated to the tax authority directly by the beneficiary and are only deductible when this is done correctly, including:

• Church taxes
• Donations
• Later purchase of insurance periods

Loss deductions and loss carried forward

Unlimited taxable losses can be carried forward and balanced against future earnings, also in the case of income/expense calculations.

Exceptional costs

Exceptional costs must be unusual, unavoidable, and represent a significant impairment of one’s ability to do business. These are subject to a deductible of 6-12%, according to income. These include costs related to illness (dental, cure/Kur, hospital costs) and burial costs, if they are not covered by the deceased’s estate.

The income-based deductible falls by one percentage point of the taxpayer is eligible for the single-parent deduction, as well as for each dependent child.

Exceptional costs with no deductible:

• Costs incurred in the course of a natural disaster
• Costs of vocational training for a child (€110/month)
• Physical or mental disability above 25%
• Support of another person, to the degree that the expenses would represent an exceptional cost to the person.

Double taxation agreements

In order to avoid taxpayers being taxed twice for income, Austria has a double taxation agreement with many other countries, which prescribe the following two taxation methods:

1. Exemption method: the taxpayer is tax-exempt in Austria, but the income is considered in their tax rate (progression clause) – this applies to income earned in Germany, France, Spain, etc.

2. Imputation method: the foreign income is included in the Austrian tax return; foreign withholding taxes paid are credited to the taxpayer. This applies for instance in Great Britain and Italy.

Taxable persons are required to submit a tax return for the previous year

• when requested by the tax authority, or
• earnings from self-employed activity total more than €13,539 (2026), or
• in addition to self-employed activity exceeding €730, other taxable income exists and the total income exceeds €14,769 (2026).

In cases where both self-employment and non-self-employment exist, an income tax assessment (Einkommenssteuerveranlagung) must be applied if earnings exceed €730/year; otherwise, a worker’s tax assessment must be made. Between €730 and €1460 per year, the assessment allowance (Veranlagungsfreibetrag) may be applied.

Artists may apply to have their earnings spread over the last three years – helpful, when your income has risen significantly.

	Income EUR	Marginal tax rate %
up to	13.539	0
above	bis 21.992	20
above	bis 36.458	30
above	bis 70.365	40
above	bis 104.859	48
above	bis 1 Mio	50
above	ab 1 Mio	55

If your annual sales are more than €15,000 and your cash sales (including debit and credit card sales) are more than €7,500, you are required to register sales. The easiest way to avoid this obligation is if payments are accomplished via bank transfer. Further information can be found at www.hfp.at and  www.bmf.gv.at.

*The register must include a security mechanism to guard against manipulation; this must also be registered with the tax authority.

For artists: 13% VAT (1. July 2020 – 31. December 2021: 5%)

Instrumental music teachers: 20% VAT

Income from private music lessons is subject to the normal tax rate of 20%. That means that invoices should be prepared including VAT. These must be submitted to the tax authority by the 15th of the second month following payment; otherwise, the tax authority is authorized to require back payment of the 20% VAT in the purchase price of all business expenses, particularly investments.

Small business provision (Kleinunternehmerregelung)

If gross revenues are less than €55,000 (as of 1. January 2025), they can be considered exempt from VAT.

*If the maximum is exceeded by up to 10%, the VAT exemption remains in effect until the end of the year; VAT must be calculated beginning in the following year. If it is exceeded by more than 10%, the taxpayer is immediately subject to VAT – but only for the amount by which income exceeds the maximum and for all subsequent transactions.

When the small business provision is applied, VAT may not be included in the invoice; the tax assessment for investment and other expenses can also not be applied. It is possible to opt in to VAT via application in order to have input tax assessed; this is only useful if most of the services rendered are eligible for input tax assessment, or if the assessment is more than the VAT charges for the services. In this case, the taxpayer is obligated to apply VAT for a period of five years; only after this period ends can the VAT mandate be revoked (the revocation must be communicated to the tax authority by 31. January of the year in which the revocation should take place).

Flat-rate VAT

If revenues in the previous year did not total more than €220,000, a flat rate of 1.8% of revenues from self-employed work can be applied instead of the input tax assessment, totaling no more than €3,960.

The input tax deduction can also be applied to:

• Depreciable fixed assets costing more than €1100
• Goods intended for resale (such as CDs or DVDs)
• Third-party wages (such as fees for work as a substitute)

If the artists’ flat rate is applied to these expenses, 12% of the business expense flat rate can be applied as input tax, totaling not more than €1047 more than the non-flat-rate input taxes.

Music schools

In order for a music school’s income to be eligible for the small business provision, the school must:

• Convey general knowledge or knowledge classifiable as further education (professional development)
• Prove that the curriculum is similar to that of a public school
• Fulfill certain organizational criteria, including classrooms, teaching staff, administration, teachers employed for an extended period of time, classes consisting of mainly simultaneously present pupils, a course of study lasting more than just a few weeks, etc.

If the school fulfills these criteria, making it eligible for the small business VAT exemption, the income of self-employed private teachers teaching at the school are also exempt from VAT.

The 11 features of a legal invoice as defined in § 11 UStG

Invoices up to €400 (including VAT) and small business invoices (from 1. January 2025) must include:

1. Name and address of the service provider

2. Description of the service (type and extent)

3. Day or time period of the service

4. Payment for the service (gross fee incl. VAT)

5. Tax rate or reference to exemption or transfer of tax liability to the service recipient

6. Date of invoice

Invoices exceeding €400 (incl. VAT) must also include:

7. Name and address of the recipient

8. Amount of tax and net pay

9. UID (VAT) number of the service provider

10. Consecutive invoice number

Invoices exceeding €10,000 must also include:

11. UID number of the recipient.

NOTE: In the case of the small-business VAT exemption, the VAT amount and UID number are not necessary; however, the exemption must be noted on the invoice: (“Steuerbefreit – Kleinunternehmer gem. §6 (1) Z 27 UStG”).

• More information on taxes can be acquired in workshops or consultations with mica – music austria.
• The homepage of Steirer, Mika & Comp. Wirtschaftstreuhand GmbH offers basic information and tax tips.
• ACOM (Austrian Composers) and the Musikergilde offer personal consultations with tax professionals to their members.
• Information on business & commercial expenses from the Federal Ministry of Finance: Information zu den Betriebsausgaben und Werbungskosten für Kunstschaffende (German PDF).
• Information on maximum income levels, mandatory receipts, and exceptions can be found in the MICA article  “Klingelt‘s schon? – Informationen zur REGISTRIERKASSE” (German).
• FAQ on the register obligation can be found on the homepage of the Austrian Chamber of Commerce (WKO).
• The Musikergilde homepage offers a brief overview for musicians.
• The Federal Ministry of Finance publishes an informational brochure on Associations and Register Obligation (German PDF).