Insights
VAT
Missing Export Certificates for Third Countries
For VAT purposes, export deliveries to third countries are exempt from VAT under certain conditions. However, the tax exemption is tied to strict formal requirements.
Goods deliveries by Austrian entrepreneurs to customers in states outside the European Union (so‑called third countries, such as Switzerland, the United Kingdom or the USA) can be tax‑complex to handle. If the legally required evidence is not provided in full, this can lead to significant additional assessments during tax audits.
Actual crossing of the border by the goods
In addition to the material legal requirements for claiming the tax exemption, the export proof is of essential importance, demonstrating that an actual border crossing of the goods has taken place. The law therefore requires clear proof that the item of the delivery has actually reached the third country.
In principle, the export proof must be received by the filing deadline of the relevant VAT advance return (UVA). The tax exemption can, however, also be applied provisionally at the time of export, even if the export proof is not yet available at that moment. The export proof must nevertheless be provided no later than six months after the actual delivery. If the document cannot be submitted after this period, the tax exemption is retrospectively lost.
Clarification of the exact physical deviations
The dispatch of the goods is certified electronically. The export customs office certifies the dispatcher’s export of the goods by transmitting the IE599 message. If there are minor deviations between the declaration and the actual physical export of the goods, control code A4 is used. Code B1, on the other hand, indicates significant deviations. Therefore, action is regularly required for codes A4 and B1: Since the codes A4 and B1 signal that the actual flow of goods does not exactly match the declaration, the exact physical deviations need to be clarified. Where necessary, invoice amounts must be adjusted to reflect the goods actually dispatched. Documentation of loss adjustments or any damage is also advisable.
It should also be noted that the retention period for the evidence is 7 years and starts at the end of the calendar year to which the documents relate. Retention can be on electronic media or in paper form.
Note
Proper documentation of third‑country exports requires precise internal procedures. As export certificates and accounting records must be retained for seven years under the general tax legislation, the document chains should be systematically checked for completeness and accuracy as soon as they are received. If you need assistance with setting up or reviewing your evidence, we are happy to help.
Actual crossing of the border by the goods
In addition to the material legal requirements for claiming the tax exemption, the export proof is of essential importance, demonstrating that an actual border crossing of the goods has taken place. The law therefore requires clear proof that the item of the delivery has actually reached the third country.
In principle, the export proof must be received by the filing deadline of the relevant VAT advance return (UVA). The tax exemption can, however, also be applied provisionally at the time of export, even if the export proof is not yet available at that moment. The export proof must nevertheless be provided no later than six months after the actual delivery. If the document cannot be submitted after this period, the tax exemption is retrospectively lost.
Clarification of the exact physical deviations
The dispatch of the goods is certified electronically. The export customs office certifies the dispatcher’s export of the goods by transmitting the IE599 message. If there are minor deviations between the declaration and the actual physical export of the goods, control code A4 is used. Code B1, on the other hand, indicates significant deviations. Therefore, action is regularly required for codes A4 and B1: Since the codes A4 and B1 signal that the actual flow of goods does not exactly match the declaration, the exact physical deviations need to be clarified. Where necessary, invoice amounts must be adjusted to reflect the goods actually dispatched. Documentation of loss adjustments or any damage is also advisable.
It should also be noted that the retention period for the evidence is 7 years and starts at the end of the calendar year to which the documents relate. Retention can be on electronic media or in paper form.
Note
Proper documentation of third‑country exports requires precise internal procedures. As export certificates and accounting records must be retained for seven years under the general tax legislation, the document chains should be systematically checked for completeness and accuracy as soon as they are received. If you need assistance with setting up or reviewing your evidence, we are happy to help.