Capital
Vienna
Currency
Euro
Languages
German
Population size
9.0M
Average Monthly Salary
€3100
EU
Since 1995
Region
Western-Europe
Gift Giving Norms
Formal, high-quality gifts appreciated
Major Corporate Gift Days
Christmas, Easter
Customs Complexity
Low
VAT - Standard Rate
20%
Duty Free Threshold
€150
Ave Duty Rate
2%
1. Employee Merch vs. Gifts
In Austria, items provided to employees can be considered non-taxable if they’re strictly work-related or meet specific monetary limits. Otherwise, they may be classified as benefits in kind (Sachbezüge), potentially subject to income tax or social contributions.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Essential Tools & Uniforms
Apparel or equipment required for an employee’s role typically does not count as a taxable benefit. If a company logo is clearly visible and the item is genuinely used for work, it often qualifies as non-taxable.
Low-Value Employee Gifts
Austria may allow certain small-value or occasional gifts to remain exempt from payroll taxes—like small holiday gifts or items recognising personal events (birthdays, weddings). The exact thresholds can shift over time, so confirm current amounts with local tax experts.
Potentially Taxable Items
Non-Work Items
If an item is purely personal (no real work function or minimal company branding), its value might be added to the employee’s taxable income.
Exceeding Monetary Thresholds
If a benefit surpasses Austria’s small-value exemption or is provided outside recognised occasions, it could be considered a benefit in kind, leading to additional tax or social security charges.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
Business gifts can be partly or fully non-deductible if their value is deemed excessive or not clearly linked to a business purpose. Austria’s corporate tax regime generally allows modest gifts if they have a legitimate promotional objective.
Compliance
Anti-corruption rules discourage lavish gifts in interactions with public officials or regulated sectors (like healthcare). Document the purpose and value of such gifts to avoid potential issues.
1.3 Marketing Merch
Promotional Merchandise
Branded items used at events or fairs can be deemed marketing/advertising expenses rather than gifts. Retain invoices and event details so it’s clear they serve a promotional function.
2. Shipping, Customs & Duties
2.1 Shipping
No Customs Duties
Austria imposes no customs duties on merchandise shipped from other EU countries.
VAT Considerations
If both supplier and recipient are VAT-registered in different EU states, you can typically apply intra-community supply rules or reverse-charge. Consult your accountant for specifics.
2.2 Importing
Import Duties & VAT
Items entering Austria from non-EU countries may incur customs duties (when over €150 in value), plus 20% VAT on (value + shipping + duties).
Documentation
A commercial invoice, correct HS codes, and product descriptions will facilitate smoother customs clearance.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender handles all import taxes/fees.
Delivered At Place (DAP)
The recipient is billed for duties/VAT upon arrival, which can cause delays or surprise costs.
2.4 With Monday Merch
Because our warehouse is located in Rotterdam (The Netherlands), shipping to Austria is duty-free. We also advise on whether local VAT or reverse-charge scenarios apply, simplifying the entire process.
3. Cultural & Local Etiquette
3.1 Gifting customs
Appreciation for Quality
Austrians value well-made, practical items. Overly flashy gifts may appear excessive.
Conservative Approach
Like neighbouring Germany, Austrian business culture tends to be polite yet reserved; subtle or tasteful designs may go over best.
Holiday Gifting
Weihnachten (Dec 24–26) is the prime gifting season. Some firms also acknowledge Easter or personal milestones with small tokens.
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
Environmental Consciousness
Austria is known for strong eco-friendly policies. Opting for minimal packaging or responsibly sourced materials often resonates well.
EU Packaging & Recycling Laws
Austria enforces EU directives on packaging and waste management. Ensure your merch packaging aligns with recyclability standards to meet consumer expectations and reduce environmental impact.
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
Remote Employees
GDPR applies to collecting personal data for shipping to home addresses. Ensure employees consent to providing addresses, and store them securely.
Onboarding & Retention
Welcome kits featuring branded apparel or practical office items typically don’t raise tax issues if they serve a legitimate work function or remain modest in value.
6. Summary and Key Takeaways
6.1 Summary & Takeaways
Employee Items vs. Benefits in Kind
Branded, work-related merchandise is typically non-taxable. Exceeding small-value thresholds or distributing purely personal items can lead to extra tax or social contributions.
B2B Gifting & Marketing
Moderate gifts with a clear business purpose may be deductible. Promotional items are often marketing expenses if documented properly.
Shipping & Customs
Within the EU: No customs duties, straightforward VAT rules.
Outside the EU: Duties above €150 + 20% VAT on total value.
Monday Merch Warehouse: Shipping from Rotterdam avoids customs headaches for EU deliveries.
Cultural Emphasis on Quality & Sustainability
Austrians appreciate practical, well-made items—eco-friendly packaging adds extra appeal.
7. Frequently Asked Questions
7.1 Questions & Answers
Do employees pay tax on corporate merch here?
If it’s purely work-related (like uniforms), it’s often non-taxable; personal perks can be taxed.
What about B2B gifts in Austria?
Modest gifts for promotional aims are usually deductible; excessive spending may be challenged.
Key cultural point?
Austrians appreciate high-quality, understated gifts—avoid anything overly lavish.
Sources
Austrian Ministry of Finance (BMF) – Official site for tax regulations.
Austrian Customs (Zoll) – Info on import duties, thresholds, and procedures.
WKO (Austrian Federal Economic Chamber) – Business guidance, including local compliance and labor advice.
Disclaimer
This guide is for informational purposes only and does not constitute legal or tax advice. Always consult with a local tax professional or the relevant authorities for the latest regulations.
