Starting an E-Commerce Business in Austria – Key Terms

A set of concise vocabulary-style flashcards covering core legal concepts for starting and operating an e-commerce business in Austria, as presented in the notes.

Austrian domestic law

Law enacted by the Austrian national legislator at federal and state levels; for business, federal law predominates; constitutional law has the highest rank; sources include statutes, regulations, and court decisions (case law is not a general source).

European Union law (EU law)

Primary EU law (TEU, TFEU, CFREU) plus secondary EU law (Regulations and Directives); Regulations bind directly, Directives require national implementation; EU law has primacy over national law.

International law

Law governing relations between states and international entities; major sources include treaties and the Vienna Convention on the Law of Treaties (VCLT); some treaties are self-executing while others require national implementation.

RIS (Rechtsinformationssystem)

Austrian Legal Information System used to search official legal sources and texts.

Gewerbeordnung (GewO)

Austrian Trade Act governing trade activities; applies to self-employed, regular or large-scale profit-making activities; some activities are exempt or regulated under other laws.

Trade licence (Gewerbeberechtigung)

Official permission to conduct a trade, issued by the competent Gewerbebehörde; filing can be done electronically via GISA.

Anmeldungsgewerbe

Registration-based trade activity; initial step to start a business under GewO.

Regulated trades (reglementierte Gewerbe)

Trades requiring specific qualifications or reliability (Zuverlässigkeitsgewerbe); recognition of qualifications from other states may be required.

Exclusion criteria (Gewerbe)

Grounds that can bar a person or company from obtaining a trade licence (e.g., certain criminal convictions, insolvency).

Sole proprietorship (Einzelunternehmen)

Business owned by one person; unlimited personal liability; may use a trade name; accounting thresholds trigger formal obligations.

Civil law partnership (GesbR)

Partnership with two or more people; may lack separate legal personality; partners usually fully liable; written agreement typical.

General partnership (OG)

Partnership where all partners have unlimited liability; can be entered in the company register; each partner may manage unless otherwise agreed.

Limited partnership (KG)

Partnership with at least one general partner (unlimited liability) and one limited partner (limited liability); limited partner liability is restricted.

Private Limited Company (GmbH)

Corporation with limited liability; minimum share capital €10,000; must have notarial articles and be entered in the company register; one-person GmbH allowed.

Flexible Company (FlexCo / FlexKapG)

New Austrian company form (since 2024) similar to GmbH with added flexibility; allows unique features like employee shares and simplified processes.

Public Limited Company (AG)

Corporation with limited liability; minimum share capital €70,000; shares may be traded; governance includes Vorstand, Aufsichtsrat, and Hauptversammlung.

European Company forms (SE/SCE)

European-wide company forms for cross-border business; cross-border conversions and related laws apply; most companies stay under domestic Austrian law.

Trade name (Firma)

The name under which a trader conducts business; suffixes indicate legal form (e.g., e.U., OG, GmbH); must be distinguishable, non-misleading, and may include geographic terms under certain conditions.

Trademark (Markenrecht)

Brand or sign used to identify goods/services; can be word, figurative, color, or sound marks; registered nationally with the Patent Office or EU-wide via EUIPO; Madrid System offers international protection.

Domain name

Internet address used for a website; must avoid infringing third-party rights (e.g., trademarks); domain grabbing can constitute unfair competition.

Value-added tax (VAT / Umsatzsteuer)

Consumption tax charged on goods and services; standard rate typically 20% in Austria; thresholds determine when VAT must be charged; cross-border rules apply in EU/EEA.

EU/EEA cross-border VAT mechanisms (OSS/IOSS)

OSS (One-Stop Shop) streamlines VAT for cross-border B2C services/goods; IOSS (Import OSS) simplifies VAT for goods imported from outside the EU/EEA.

Income tax (Einkommensteuer)

Personal income tax for individuals; progressive rates; domiciled or resident individuals taxed on worldwide income; international considerations apply.

Corporate tax (Körperschaftsteuer, KÖSt) and KESt

Tax on corporate profits (25% rate); KESt (capital gains tax) withheld on distributions to shareholders (27.5%).

Digital tax (Digitalsteuergesetz)

5% tax on online advertising services (within Austria); thresholds apply (global turnover and Austrian sales).

Cross-border VAT (innergemeinschaftlicher Erwerb, reverse charge, OSS, IOSS)

Rules governing VAT when trading across borders in the EU/EEA; intra-EU acquisitions and services often use reverse charge; OSS/IOSS simplify reporting.

Data protection (GDPR)

EU-wide regulation for processing personal data; applies to controllers and processors; establishes lawful bases (Art. 6, 9), rights (access, portability, erasure), and transfer rules.

Data protection act (DSG)

National implementation of GDPR provisions in Austria; complements GDPR with national specifics.

Controller vs. Processor (GDPR)

Controller decides purposes/means of processing; Processor processes data on behalf of the controller; contracts per Article 28 govern processing.

Cookies (data processing)

Small data files stored on a user’s device; consent required for most non-essential cookies; session cookies may be exempt; dark patterns are discouraged.

Imprint and disclosure requirements (ECG/MedienG/DLG)

Legal obligation to disclose identity, contact details, VAT number, trade register, and other information on websites and in electronic communications.

FAGG (Distance and Off-Premises Contracts Act)

Regulates online and distance contracts with consumers; provides a right of withdrawal (14 days), model withdrawal form, and pre-contractual information duties.

Implied ADR/ODR (AStG, ODR platform)

Alternative dispute resolution for consumer disputes; option between Internet Ombudsman or conciliation boards; EU ODR platform connects consumers and traders online.

Digital Services Act (DSA)

EU regulation governing large online platforms; duties include notice-and-action, transparency, risk management, and duties towards traceability and content moderation.

Platform-to-Business (P2B) Regulation

Rules ensuring transparency and fairness for business users of online intermediation services; requires clear terms, notice periods, and redress mechanisms.

Unfair competition law (UWG/Konkurenzrecht)

Prohibits misleading or aggressive business practices; allows injunctions by qualified entities; protects competition and consumers.

CISG (UN Convention on Contracts for the International Sale of Goods)

International treaty governing cross-border contracts for the sale of goods between contracting states; can be opted out; covers formation and seller/buyer rights.

Rome I Regulation

EU regulation determining governing law for contractual disputes; party autonomy generally allows choosing applicable law; default if no choice.

Brussels I Regulation (EU jurisdiction rules)

EU rules determining which court has jurisdiction for cross-border contractual disputes; consumer contracts have favorable jurisdiction rules.