Austrian Advertising Tax: When and How to Pay the 5%

30-second takeaway: Austria's advertising tax is 5% of net advertising revenue under the Werbeabgabegesetz 2000 (Federal Law Gazette I No. 29/2000). The advertising service provider — not the advertiser — is the legal taxpayer. The 5% is charged in addition to the standard 20% VAT and must be filed by the 15th of the second following month. DOOH advertising in Austria is clearly subject. Slovakia has no equivalent tax.

First-time advertisers in Austria almost always trip over the same line item on their invoice: the advertising tax. 5% sounds small, but it adds up, often shows up too late in budgeting, and is regularly confused with VAT. This post explains what the tax actually is, who owes it, how it's calculated and reported, and what you need to look for as an advertiser or screen operator.

1. Legal basis: Werbeabgabegesetz 2000

The tax is governed by the Werbeabgabegesetz 2000 (Federal Law Gazette I No. 29/2000, in force since 1 June 2000, amended several times). It replaced the older state-level advertising and announcement levies.

§ 1 defines the taxable event: advertising services performed domestically for consideration. This explicitly includes:

• Ads in print media
• Ads in radio and television
• Allowing the use of spaces or rooms to display advertising messages

DOOH typically falls under the third category — screens, billboards, LED walls are spaces whose use is granted to the advertiser for a fee. This is a separate regime from the digital services tax (Digitalsteuer 2020), which targets large foreign online platforms only.

2. Who owes the tax?

Under § 3, the taxpayer is whoever is entitled to the consideration — the service provider (the platform or media owner), not the advertiser. In practice:

• The provider receives the agreed net amount from the advertiser
• 20% VAT is added on the invoice
• The 5% advertising tax is part of the provider's cost calculation, usually shown as a separate line
• The provider files and pays the 5% directly to the tax office

For you as advertiser: the tax appears as a separate line item on your invoice and is generally deductible as a business expense.

3. Tax base and amount

§ 2 sets the rate at 5% of the net advertising fee — i.e. the price excluding VAT and excluding the advertising tax itself.

A quick example for a small DOOH campaign:

• Net media budget: €1,000
• Advertising tax 5%: €50
• Subtotal: €1,050
• VAT 20% on subtotal: €210
• Gross invoice: €1,260

Note that VAT is calculated on the subtotal including the advertising tax — the tax is economically part of the consideration for the advertising service.

§ 4(2) exempts very small providers whose monthly tax base is below €10,000 — relevant only for micro-operators.

4. Filing, deadlines, consequences

The provider must:

• Self-assess the tax
• File and pay by the 15th of the second following month
• Submit an annual return by 31 March of the following year via FinanzOnline
• Keep records that make tax base and amount auditable

Late filings trigger surcharges under the Federal Fiscal Code (BAO) and, in repeated cases, fiscal-criminal consequences. As an advertiser, look for platforms that transparently itemise the tax. An invoice without a clear "Werbeabgabe 5%" line is a red flag.

Pre-booking checklist

• Are net amount, advertising tax and VAT separately shown on the invoice?
• Is the quoted media budget understood as net-net or already including the advertising tax?
• Do you have a valid VAT ID for input-tax deduction?
• Do you understand the difference between the advertising tax (OOH/print/TV/radio) and the digital services tax (online platforms)?
• For cross-border campaigns: is it clear whether the service is rendered in Austria?

Deep dive: DOOH advertising tax overview for Austria.

Book compliantly today

Every adyoutiser invoice clearly itemises net, 5% advertising tax and 20% VAT — no hidden mark-ups. Plan and book your campaign.

This article is information, not legal advice. Consult a tax advisor or attorney for individual cases.