Online Shop or Etsy Shop in Austria: Which Trade Licence Do I Need?
The Decision Table
| Handmade goods (the classic Etsy case) | Purchased goods / resale | Dropshipping | |
|---|---|---|---|
| Trade (Gewerbe) | the matching production trade, usually free/non-regulated (e.g. production of handicraft decorative and jewellery articles, „Erzeugung von kunstgewerblichen Zier- und Schmuckgegenständen“, or production of cosmetic articles, „Erzeugung von kosmetischen Artikeln“) | commercial trade excluding the regulated commercial trades („Handelsgewerbe mit Ausnahme der reglementierten Handelsgewerbe“) — free | likewise the commercial trade — the fact that the goods never touch your own warehouse changes nothing |
| Certificate of qualification | no — unless the trade is regulated (gold- and silversmiths, bakers, confectioners, butchers …) | no | no |
| Special obligations | Food: additional registration under §10 LMSVG (Austrian Food Safety and Consumer Protection Act) + hygiene/labelling rules; cosmetics: observe EU product law | No-go zone under §50 Abs 2 GewO (Austrian Trade Act, Gewerbeordnung): no mail-order sale of medicines, poisons, therapeutic aids (Heilbehelfe — except contact lenses), weapons or pyrotechnics to end consumers | VAT chain transaction (USt-Reihengeschäft); for goods from non-EU countries, IOSS for consignments up to €150; check product liability as a quasi-manufacturer |
| Mixing in purchased goods | allowed as an ancillary right (Nebenrecht, §32 GewO) — your own production must remain the main focus, otherwise register the commercial trade as well (also free) | — | — |
These Obligations Apply to Every Shop
- Site notice (Impressum, §5 ECG — Austrian E-Commerce Act): name/company, address, contact details including e-mail, company register number (Firmenbuchnummer) if applicable, chamber membership, VAT ID (UID) if applicable — permanently, easily and directly accessible. Violation: administrative fine of up to €3,000 (§26 ECG).
- All-clear on the Media Act (Mediengesetz): even with product reviews, a web shop counts as a small website — name, registered seat and business purpose are enough; the full disclosure required of large media outlets is not needed.
- Consumer law (FAGG — Austrian distance-selling act, Fern- und Auswärtsgeschäfte-Gesetz): right of withdrawal, button solution (the order button must read something like „zahlungspflichtig bestellen“ — order with obligation to pay), accessible terms and conditions (AGB).
- GDPR (DSGVO): privacy policy, cookie consent.
Selling to Other EU Countries: the €10,000 Threshold
| EU revenue from consumers per year | What applies |
|---|---|
| up to €10,000 (this year and the previous year) | Austrian VAT as for domestic sales — nothing further to do |
| over €10,000 | taxation in the country of destination — in practice via the EU OSS (One-Stop Shop): register once via FinanzOnline and declare all EU VAT centrally instead of registering in each country individually |
Don’t mix these up: the €10,000 threshold decides where the VAT goes — the small-business threshold (Kleinunternehmergrenze) of €55,000 decides whether you charge VAT at all. Details on the latter: the “Kleingewerbe” myth with the 2026 thresholds. For sales via platforms, the platform deemed-supplier rule (Plattform-Lieferfiktion, §3 Abs 3a UStG — Austrian VAT Act) may also apply — plan for professional tax advice in third-country scenarios.
What Etsy & Co Report to the Tax Office (DAC7)
- Goods only: the exemption is tied expressly to the „sale of goods“ (§3 Abs 1 Z 3 DPMG). Anyone offering services through a platform has no such floor — reporting starts with the first euro.
- Exempt from reporting is only whoever stays under 30 sales AND at most €2,000 in remuneration per calendar year (§5 DPMG — Austrian digital-platform reporting act, Digitale Plattformen-Meldepflichtgesetz) — per platform.
- Reported is therefore anyone who breaks either of the two limits: from the 30th sale or from €2,000.01. The platform’s reporting deadline: 31 January of the following year.
- Being reported is not a tax liability: whether your sales are commercial and taxable is decided independently — the private-vs-commercial distinction is covered in the German guide Vinted, willhaben & Flohmarkt.
Frequently Asked Questions
Do I need a trade licence for an online shop — or can I run it casually without one?
Yes, a trade licence is required: as soon as you sell independently, regularly and with the intention of making a profit, you need a business registration — even as a side business next to your job. The good news: the commercial trade is a free trade, registration costs nothing and there is no exam.
Which trade do I need for Etsy in Austria?
For purchased goods, the free commercial trade. For handmade goods, the matching free production trade — for the classic Etsy case, for instance, the production of handicraft decorative and jewellery articles. Buying in accessories is allowed as an ancillary right, as long as your own production remains the main focus.
May I sell homemade jam or biscuits online?
In principle yes — but with two separate registrations: the business registration (the free food and beverages trade; bakers, confectioners and butchers, by contrast, are regulated trades) and the registration as a food business operator with the provincial governor under §10 LMSVG. Hygiene and labelling obligations come on top.
Does Etsy report my sales to the tax office?
Yes, from 30 sales OR more than €2,000 in receipts per year and platform (DAC7/DPMG) — only those who stay under both limits remain exempt. The report itself is not a tax liability: whether you pay tax is decided independently of it.
From what point do I have to charge VAT?
Two separate thresholds: the small-business threshold (€55,000 gross per year) decides WHETHER you charge VAT at all. The EU distance-selling threshold (€10,000 per year for sales to consumers in other EU countries) decides WHERE the VAT goes — above it you pay tax in the country of destination, in practice via the EU OSS through FinanzOnline.
What am I not allowed to sell online at all?
Mail-order sale to end consumers is prohibited for medicines, poisons, therapeutic aids (except contact lenses), weapons, ammunition and pyrotechnic articles (§50 Abs 2 GewO) — expressly also for goods from your own production. Tobacco is regulated separately through the state monopoly.
Sources
- WKO — Trade law and the internet (commercial trade as the standard case, exceptions; German)
- BMWET — Nationwide list of free trades (official trade wordings; German)
- RIS — Gewerbeordnung (§5, §32, §50 GewO)
- WKO — Intra-Community distance selling (the €10,000 threshold, EU OSS; German)
- USP — Legal obligations for online shops (FAGG, terms and conditions, GDPR; German)
- WKO — The correct website Impressum (German)