(Last updated: 13 May 2011)

Business etiquette

Business tips

Before scheduling appointments, provide letters of introduction from an intermediary, another business associate or client, or a mutual friend. Send a follow-up letter a month later requesting an appointment. You may have to attend a few pre-business functions before you finally meet the decision makers.

Give your business card to the receptionist/secretary on arrival and exchange cards with associates on the first meeting. Include all titles and qualifications on your business card.

Meetings are formal and punctuality is of the utmost importance.

Shake hands when arriving and leaving. It’s considered polite to shake hands with the women before the men. The most senior person will extend his/her hand first. Be sure to shake everyone’s hands. It’s not uncommon for a businessman to kiss a visiting businesswoman’s hand as a greeting.

If you’re the guest, wait for your host to introduce you, don’t do it yourself. Address business associates by their title (eg. Dr, Professor) and surname. Mr is ‘Herr’ , and Ms is ‘Frau’ in German. First names should be used only if you know the person well or have been instructed to call them by their first name.

If business entertaining is taking place out of business hours it is appropriate to be accompanied by your spouse.

If you are invited to lunch or dinner after a meeting it’s bad manners to offer to pay the bill. Instead, offer to reciprocate at your next meeting.

Austrian business society is conservative: a dark-coloured suit and a tie for men, and sober suit or dress for women is appropriate for business meetings and meals. Even if an event is ‘informal’ dress well as you’ll be judged on your appearance.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

Austria is part of the harmonised trade system of the European Union. Common Customs Tariff (CCT) is applicable to goods from non-EU countries, including Australia. Most duties are ad valorem based on the WTO valuation system (approximately CIF value). Specific rates apply to a limited number of goods.

Before shipping any goods to Europe, you should obtain a written customs duty ruling from the Austrian customs service. These rulings are called Binding Tariff Information or BTI.  Getting a BTI is free and will prevent any conflict over customs or excise duty.

Customs authority contact details:
Director General for Customs and Excise
Bundesministerium fur Finanzen
Himmelpfortgasse 4-8
A-1011 Wien
Austria
Tel: +43 1 514 330
Fax: +43 1 513 9860

Non-tariff barriers

Import licences are required for a limited number of items, mainly agricultural products. Products include cereals, rice, beef and veal, sugar, isoglucose, oils and fats, seeds, milk and milk products, wine, processed fruit and vegetables, sheep meat, buffalo meat and goat meat. Licences are valid for six months with extensions granted if necessary.

Shipments must be cleared prior to the expiry date of the licence.

A range of alcoholic beverages is subject to quota arrangements - European Union (EU) wide arrangements.

Exchange is readily available through authorised banks. Exchange licences are required for specific goods.

A wide range of items are subject to compulsory standards testing by one of a number of specialist government agencies. Approval must be obtained prior to importation.

Meat and Livestock Australia or the State Department of Agriculture will also provide advice to meat exporters. Specific requirements should be checked with the importer.

Drugs and pharmaceuticals require prior permits from the Austrian authorities and standards are strictly controlled.

There is EU, and Austrian legislation covering almost every aspect of food production and sale. Careful investigation is required before offering any product for sale. Legislation covers:

• Ingredients
• Label design and content
• Jar or pack size
• Additives
• Need for an Austrian or EU address
• Product descriptions and names
• Products of animal origin
• Packaging materials

Certain products can only be sold in the EU if they conform to the appropriate EU directives and show a CE Mark. CE marking protects consumers by ensuring that there is a common standard across Europe.

Product certification, labelling and packaging

Labelling and marking

Specific labelling regulations are applied to imports of most consumable items. Labelling on canned foods should be in German indicating:

• The country of production
• The canner's name
• The recommended date of consumption
• The net contents
• The contents at the time of canning

The 1975 Food Law regulates the marking and labelling of foods and food products, which is the responsibility of the Ministry of Health and Environmental Protection. Specific requirements for other products should be checked with the importer.

Packaging

Goods should be securely packed, having due regard to the nature of the goods, means of transport and likely climatic conditions during transit and delivery. Outer containers should bear the consignee's mark and port mark and be numbered (to accord with packing list) unless the contents can otherwise be readily identified.

Austrian authorities have introduced similar legislation that now operate in the Federal Republic of Germany. These new German packaging regulations require suppliers of goods to arrange for the retrieval and recycling of transport and sales packaging.

Exporters to Austria should consult their customers regarding the possible introduction of this measure.

Special certificates

Livestock, food, animal products, plants and plant products require health certificates issued by the approved authority in the country of origin (see 'Public health requirements').

Certificates accompanying carcasses and cuts of meat must indicate the number and nature of packages, a description of the meat, gross weight and net weight.

Plants for propagation and some plant products (pome, stone fruit and strawberries in 250g packs) require phytosanitary certificates issued by the approved authority in the country of origin. A certificate of origin is also required.

A certificate of quality issued by an approved authority must accompany imports of wine. If not accompanied by the certificate, imports are subject to an examination by an Austrian research laboratory registered with the Austrian Ministry of Agriculture. A certificate of age may be required for spirituous liquors.

Methods of quoting and payment

EU guidelines apply. Austrian importers expect favourable payment terms and usually prefer long-term payment conditions. Discounts for payment on receipt of goods are usually from three to six per cent of the invoiced price.

Documentary requirements

All documentation is regulated by European Union (EU) standards.

Commercial invoice

No prescribed form is required with commercial invoices. A minimum of three copies is required. The commercial invoice must include the name and address of both buyer and seller, a full description of the goods (including HS classification), marks and numbers of packages, the value, weights and country of origin. Fax signatures are not permitted on the original invoice. Textile shipments require specific details regarding composition, nature and weights.

Bill of lading/airway bill

No special requirements. To Order bills are acceptable. If not provided, a statement of origin should appear on the invoice.

Packing list

This is not compulsory, but it facilitates clearance.

Certificate of origin

This is required for some specific items, eg. fruit. The certificate must be stipulated on the letter of credit. It should also be authorised by an approved authority.

Public health requirements

Livestock, food, animal products, plants and plant products require health certificates issued by the approved authority in the country of origin (see 'Public health requirements').

Certificates accompanying carcasses and cuts of meat must indicate the number and nature of packages, a description of the meat, gross weight and net weight.

Plants for propagation and some plant products (pome, stone fruit and strawberries in 250g packs) require phytosanitary certificates issued by the approved authority in the country of origin. A certificate of origin is also required.

A certificate of quality issued by an approved authority must accompany imports of wine. If not accompanied by the certificate, imports are subject to an examination by an Austrian research laboratory registered with the Austrian Ministry of Agriculture. A certificate of age may be required for spirituous liquors.

Taxation

Value-added and excise taxes:

• Value-added tax (VAT) is levied according to EU guidelines on virtually all goods and services.
• 20 per cent - general rate (eg. industrial and manufacturing goods).
• 10 per cent - reduced rate applicable to foodstuffs and services.
• Compensatory/equalisation amounts apply in the agricultural sector as per EU stipulations.
• Excise taxes are levied on a few specific luxury items, notably alcoholic beverages and tobacco.
• An import turnover tax is collected by the Austrian customs authorities when clearing goods in Austria for free circulation in the EU.

All companies resident in Austria and foreign companies with a branch or permanent establishment are subject to corporate income tax. A company is defined as resident if it has its legal seat or its effective place of management in Austria. Non-resident companies are subject to tax on their Austrian-source income only. The corporate tax rate (‘körperschaftssteuer’) is 34 per cent.

Other taxes

The formation of a partnership or corporation is subject to a fee/tax of one per cent of the capital.

Real estate transactions including transfer of real estate upon formation of a company are subject to a 3.5 per cent tax. The registration fee in the land register is one per cent.

The income tax rate on dividends paid by corporations to their individual shareholders is 25 per cent without further income tax being levied.

A municipal tax (3 per cent of the payroll) is levied on all entrepreneurs with employees.

There’s an obligatory contribution of 4.5 per cent of the payroll to the child allowance fund.

Income tax is on a progressive rate of 10-50 per cent.