Navigating E-Invoicing Regulations in Austria: A Guide for SMEs

E-invoicing offers many benefits, including a faster and more efficient invoicing process. However, for small and medium-scale enterprises (SMEs) in Austria, adopting e-invoicing is not just about improving invoicing efficiency. It is essential for compliance as Austria has e-invoicing mandates.

This guide will explore the e-invoicing regulations in Austria to help SMEs in the country better manage this aspect of their financial operations.

Is electronic invoicing mandatory in Austria?

In Austria, electronic invoicing is mandatory for business-to-government (B2G) transactions. It is not mandatory for business-to-business (B2B) transactions but is accepted voluntarily.

Austria began its journey to electronic invoicing in 2012 when the ICT Consolidation Act (IKT-Konsolidierungsgesetz) was enacted. According to Article 5 of IKT-Konsolidierungsgesetz (or ICTKonG for short), all domestic and foreign businesses with contracts with the federal government must send structured electronic invoices to request payment from government departments for goods or services provided. The only exceptions were insurance contracts, rental contracts, advance payments, and membership fees.

This e-invoicing law took effect in January 2014, meaning the Austrian government was one of the first countries to follow the European Union’s Directive 2014/55/EU, which directs that all European public administration must be able to receive invoices in electronic format from their suppliers.

The Austrian e-invoicing mandate applied to only the central authorities (federal government) until April 2020, when it was extended to public authorities of the municipal administration.

Austria currently has no e-invoicing mandates for business-to-business (B2B) transactions. However, B2B e-invoicing is strongly encouraged. In fact, more and more businesses, especially those with customers in other countries, are embracing electronic invoicing.

Besides invoicing efficiency, using e-invoicing solutions to send structured e-invoices helps these businesses to automatically comply with foreign countries’ invoicing regulations when exchanging these financial documents between borders.

Thus, the Austrian e-invoicing timetable is:

2012: Electronic invoices gained the same standing as paper-based invoices through the ICT Consolidation Act.
2014: Electronic invoices became mandatory for all departments of the federal government.
2020: Electronic invoices became mandatory for federal, regional, and municipal authorities.

Characteristics of e-invoicing in Austria

When sending e-invoices in Austria, you must meet specific requirements. The important Austrian e-invoicing requirements are regarding:

Platform and standard

For e-invoicing compliance in Austria, e-invoices must be transmitted via the Federal Service Portal Unternehmensserviceportal (USP) or the PEPPOL eDelivery Network to the eRechnung platform.

The invoices must be in the national XML standard ebInterface or the PEPPOL BIS standard.

The USP (or Business Service Portal) is a service portal developed by the Austrian Ministry of Finance to support the transmission of e-invoices in Austria. So, Austrian SMEs invoicing Austrian entities typically use this channel. However, when invoicing foreign parties that usually do not have Austrian VAT IDs, SMEs in Austria typically use the cross-border network PEPPOL.

Invoice content

When you send electronic invoices in Austria, the document must contain the following information:

Sender details (including company name, address, email address, VAT number, and contact details)
Recipient office (department, address, processor)
Invoice number
Invoice date
Supplier number under which the contractual partner is registered with the federal agency (from the order)
Order reference (from the order)
Bank details (IBAN, BIC)
Position number (if specified in the order)
Data on the goods invoiced (name, quantity, unit, unit price)
Total amount (gross, net, VAT)
Payment terms

Digital signature and authentication

Austria does not require electronic signatures on e-invoices. This is because the Business Service Portal provides authentication services for e-invoice submission.

For example, there is an identity verification service that verifies the identity of users who submit e-invoices. Thus, there’s no need to use electronic signatures to ensure that invoices are sent by a legitimate individual (authorized representative of a company).

Archiving requirement

Austria has a 7-year archiving period, meaning businesses should keep electronic invoices and all supporting documents for at least seven years.

What is the e-invoicing process in Austria?

The Federal Service Portal allows individuals to submit e-invoices in three methods as follows:

Direct upload of invoices to the USP

This method allows users to upload their invoices from their local system to the USP.

First, you need to register for USP. This is a simple process that requires you to provide your Austrian ID card, mobile phone signature, or citizen’s card. After logging in to the USP, access the invoice submission section and choose the option to upload your invoice. The USP will process the invoice and provide a confirmation of receipt.

Direct upload of invoices to the USP is suitable for small businesses and individuals who manage a limited number of invoices.

Manually create invoices through an online form

This option allows users to create and submit e-invoices directly through an online form on the USP.

Just like the direct upload method, this method starts with registering for USP. Next, log in to the USP and navigate to the section where you can create invoices. Then, fill out the form by entering the necessary invoice details. Next, submit the electronic invoice directly through the portal.

The USP will process the invoice and provide a confirmation of receipt.

This method is best for SMEs that need a simple way to create and submit e-invoices without additional tools.

Transferring invoices to the USP through a web service or external provider

This method allows you to transmit your invoices electronically through the PEPPOL network.

PEPPOL uses the four-corner model, which is similar to a telecommunication network. This model involves four entities: you (the sender), the receiver, and their respective Access Point providers.

You and your invoice receivers need a reliable PEPPOL Access Point Provider like Storecove to give you access to the network. When you issue e-invoices, the document goes from your station to your Access Point Provider, who ensures it complies with relevant standards before forwarding it to the intended receiver through their PEPPOL Access Point Provider.

Benefits of e-Invoicing for SMEs in Austria

Adopting e-invoicing offers SMEs in Austria many benefits, including:

Compliance with e-invoicing regulations

Since Austria has mandatory e-invoicing regulations, businesses in the country have no choice but to submit structured electronic invoices when invoicing Austrian public entities. Using an e-invoicing solution will help SMEs comply with this legal requirement.

Adopting e-invoicing also helps Austrian SMEs with business partners in other countries to comply with e-invoicing requirements in their partners’ countries. When sending e-invoices across the border, SMEs do not need to worry about the invoicing standards in the receiver’s country.

E-invoicing via the international PEPPOL network automatically makes your invoice compliant with relevant standards before sending it.

Faster and more efficient payment processing

E-invoicing is faster than traditional paper invoicing, which usually consumes valuable time. For example, there are no postal delays. SMEs who embrace e-invoicing can send electronic invoices to their customers with just a few clicks, and these persons will receive the documents immediately.

Reduces invoicing errors

E-invoicing reduces manual steps in the invoicing process, eliminating human errors like data entry mistakes and miscalculations. For this reason, e-invoicing helps SMEs create more accurate invoices.

Quickens payments

E-invoicing can help SMEs receive payment faster. First, the invoices are delivered instantly to the receiver, meaning they can process them earlier.

Also, with e-invoicing ensuring that invoices are error-free, there would be fewer requests for clarification or disputes, leading to quicker payment processing.

Lowers invoicing costs

Businesses that adopt e-invoicing spend less on invoicing in the long run. This is because e-invoicing eliminates most costs associated with traditional invoicing methods, such as the cost of paper, printing supplies, postage, printer maintenance, and filing cabinets.

When a business processes a large volume of invoices, the cost savings can be substantial.

Effective tips for using e-invoicing in Austria

To effectively adopt e-invoicing and be compliant with Austrian regulations, follow these tips:

Stay updated

E-invoicing regulations and technologies are continually evolving, and businesses are required to understand and comply with the latest requirements.

So, regularly review updates to invoicing requirements both at the national and EU levels. Follow industry news (on platforms like the Storecove blog) and join relevant forums to stay informed about emerging trends in e-invoicing.

Find a reliable PEPPOL network provider

E-invoicing via PEPPOL makes it easy to send electronic invoices to clients within and outside Austria. However, to access the PEPPOL network, you need a reliable Access Point Provider.

Audit periodically

Conduct periodic audits of your e-invoicing process to ensure compliance with regulations. Implement measures (such as validation rules) to check and maintain the accuracy of invoice data.

Implement robust archiving practices

Use secure digital storage systems to archive e-invoices for the required seven-year period. It’s important to ensure that saved invoices (especially when they contain data that can compromise your client’s privacy) are secure.

When saving the e-invoices, use a naming convention that allows for quick and easy retrieval. This saves time when you need to call up a particular invoice for audits, legal inquiries, or some other business needs.

Takeaway: Ensure seamless compliance with Austria’s e-invoicing regulations by partnering with Storecove

In Austria, e-invoicing is mandatory between businesses and the government. It is not compulsory for business-to-business transactions, but many businesses embrace it because of its numerous benefits, which include ensuring compliance, making invoicing more efficient, quickening payment, and reducing invoicing costs.

The Business Service Portal is the platform for sending e-invoices, and they must be in ebInterface of PEPPOL BIS format. Austrian businesses, especially those that operate internationally, can also use the PEPPOL network to send e-invoices.

Thus, an effective tip for using e-invoicing in Austria is finding a reliable PEPPOL network provider, and you can’t go wrong with Storecove.

Countless businesses in Austria, the European continent, and beyond trust Storecove as their e-invoicing solution. When you connect with Storecove, you’ll get access to the PEPPOL invoicing network and be able to send compliant e-invoices to clients within and outside Austria.

Ready to become e-invoicing compliant when sending invoices to customers within and outside Austria? Contact Storecove today to set up your e-invoicing process!

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