Founding
Small-business VAT exemption, SVS and taxes in the first year
The first year goes well – then the SVS back-payment arrives. What you should know about VAT, social insurance and income tax.
Contents
This article contains advertising (affiliate) links, marked “Ad”. How we label ads
In short: If turnover stays below €55,000 gross per year you can use the small-business VAT exemption (since 2025). SVS 2026: pension 18.5 %, health 6.8 %, self-employed provision 1.53 % plus accident insurance €12.95 per month; minimum contribution basis €551.10 per month. Final contributions follow the tax assessment – build reserves. This is no tax advice. As of October 2026.
In a cleaning company’s first year everything revolves around clients, staff and processes. Tax and social insurance run in the background – until a letter from the tax office or the SVS arrives. We have seen many founders whose problem was not high charges but missing reserves for back-payments.
Small-business VAT exemption
- Turnover threshold: €55,000 gross per year (since 2025)
- Invoices without VAT, with a note on the small-business exemption
- No input VAT deduction – the VAT on equipment, vehicle and supplies stays with you
- Exceeding the threshold: if you exceed it by no more than 10 % in the current year, the exemption generally ends at year-end; above that, immediately. Clarify the details with your tax adviser.
- You can opt out and use standard taxation – this binds you for several years.
Does it pay off in cleaning?
It depends on your clients:
| Clients | Effect of the exemption |
|---|---|
| Private households | Advantage: your price is lower by the VAT, or your margin higher |
| Businesses with input VAT deduction | Little advantage: they deduct VAT anyway, but you lose your own input VAT |
| Doctors, associations, insurers (often without full input VAT deduction) | Can be an advantage |
Example (assumption): in year one you buy equipment and supplies for €6,000 gross. Under the exemption you don’t get back the €1,000 VAT included. If you mainly work for businesses, standard taxation may be cheaper. Run both options with your tax adviser.
With staff and business clients the €55,000 threshold is reached quickly: two part-time cleaners on 20 hours each at around €35 net per hour already generate considerably more. Pricing: Calculating the hourly rate for cleaning – the right way.
SVS: provisional and final
With the trade licence you are compulsorily insured with the SVS (pension, health, accident, self-employed provision).
| Contribution 2026 | Rate/amount |
|---|---|
| Pension insurance | 18.5 % of the contribution basis |
| Health insurance | 6.8 % of the contribution basis |
| Self-employed provision | 1.53 % of the contribution basis |
| Accident insurance | €12.95 per month |
| Minimum contribution basis | €551.10 per month |
At first you pay provisional contributions, often based on the minimum (2026: €160.81 plus accident insurance per month). After the income tax assessment, contributions are set finally. If you earn well, a back-payment follows – often two or three years later, when your ongoing contributions are already higher.
Example (assumption, simplified): profit in year one €30,000. The contribution basis is derived from profit plus the SVS contributions charged. With the rates above (26.83 % combined) that is roughly €8,000 or more in contributions for the year. If only around €2,100 in minimum contributions was paid, the back-payment can be correspondingly large. The SVS does the exact calculation; its contribution calculator helps with estimates.
You can ask the SVS to voluntarily increase your provisional contributions. That spreads the burden and avoids surprises.
Income tax
As a sole trader you pay income tax on profit (progressive rates; the lowest bracket is tax-free, thresholds are adjusted annually). The tax office sets advance payments, usually after your first return. The profit allowance and business expenses such as SVS contributions reduce the tax – have it checked.
Deadlines: the income tax return is generally due by 30 April (paper) or 30 June (electronic) of the following year; longer deadlines apply when you use a tax adviser.
Rule of thumb for reserves
Put a fixed share of every euro of profit into a separate account for SVS and income tax. Many founders start with 30 to 40 % of profit – your tax adviser can work out the right share for you. A separate account works wonders: what sits there doesn’t get spent.
Cash register and VAT ID
- Cash register obligation: only if annual turnover exceeds €15,000 and cash sales exceed €7,500 (both conditions). Rarely relevant with business clients paying by transfer.
- VAT ID: apply at the tax office when needed (e.g. under standard taxation or for EU business).
- Invoices: mandatory details and software: Accounting and invoicing software for cleaning companies – what matters.
Once you have staff
With your first employee come wage tax, employer contributions and municipal tax. The NeuFöG exemption can reduce certain payroll costs: Starting a cleaning company in Austria – step by step. Registration and payroll: Registering employees in Austria – employer account, ELDA, written statement.
First-year checklist
- Tax adviser before you start; decide on the exemption
- Report the start of business to the tax office (FinanzOnline), tax number
- SVS: check provisional contributions, increase voluntarily if useful
- Open a reserve account and fill it monthly
- Monitor the €55,000 threshold continuously
- File receipts as you go, exports for your tax adviser
A 15-minute monthly finance check
We recommend founders go through these points once a month:
| Check | Question |
|---|---|
| Turnover | Where am I compared with the €55,000 threshold? |
| Profit | What is my profit so far (income minus expenses)? |
| Reserve | Is the agreed share in the reserve account? |
| SVS | Do the provisional contributions still match my profit? |
| Open items | Which invoices are overdue? |
Answer these five questions regularly and no assessment will surprise you.
Frequently asked questions
Does the small-business exemption pay off in cleaning?
More often with private clients, rarely with business clients. Run both options with your tax adviser.
When does the SVS back-payment arrive?
After the income tax assessment for that year – so build reserves from the first month.
What happens if I exceed €55,000?
Up to 10 % over, the exemption generally ends at year-end; above that, immediately. From then on you invoice with VAT – plan ahead with your tax adviser.
Are SVS contributions tax-deductible?
Yes, compulsory SVS contributions are generally business expenses and reduce your profit. Your tax adviser includes them in the return.
Sources
Read next
Founding
Starting a cleaning company in Austria – step by step
From the right trade licence to the first registration with the health insurance fund – the process as it really works in Austria, including the pitfalls.
Founding
Trade licence for cleaning in Austria – building cleaning (regulated) or caretaking (free)?
Office cleaning with the free trade? This is where the costliest start-up mistakes happen. The distinction with examples – and how registration works.
Founding
The 10 costliest mistakes of cleaning company founders
Most problems in cleaning are predictable. Ten mistakes that cost the most – and how to avoid them.