From registration to tax return
A guide for cross-border businesses

1. Why a clear structure is essential for cross-border businesses

Operating in multiple countries opens new markets, cost advantages, and tax benefits. But legal and tax obligations across borders can quickly become complex.

Companies operating between Austria, Slovakia, or Romania must address registration duties, tax requirements, and social security rules. This guide outlines the key steps – from registration to tax filing – to help you avoid legal mistakes and make the most of tax benefits.

2. Proper registration: Where must a company be registered?

When doing business in another country, you must comply with local registration requirements – both for new companies and expansions.

Key points:

• Austria:Register with the commercial register (Firmenbuchgericht), tax office, and possibly social security.
  
  Tip: Foreign companies in Austria should check if they are creating a permanent establishment, which has tax implications.


• Slovakia: Register with the commercial register (Obchodný register), tax office, and social security institution.
  
  Tip: Registration in Slovakia is quicker and more cost-effective than in Austria – a good option for cross-border entrepreneurs.


• Romania: Register with the National Trade Register (ONRC).
  Tip: Romania offers special tax rates for small businesses – check if the 1–3% turnover tax applies to you.

3. Tax registration and VAT obligations

Tax registration is a common stumbling block for cross-border businesses. Depending on your activities, you may need to register in several countries.

Key points:

• VAT In the EU, the destination principle applies – VAT is due where the service or goods are delivered.
  
  Tip: Regularly selling across borders? Check if you need a VAT number in multiple countries.


• Use the reverse charge mechanism: In many cases, VAT liability shifts to the recipient, simplifying your process.
  
  Tip: Get familiar with reverse charge rules to avoid unnecessary VAT obligations.


• Permanent establishment: Having a fixed place of business in another country may create tax obligations.
  
  Tip: If you want to avoid this, review your business activities and contract structures in advance.

4. Social security: Which country’s rules apply?

Social security obligations are a major challenge for cross-border businesses.

Key points:

• General rule: Social security contributions are due in the country where the employee works.


• Postings with A1 certificate: Employees temporarily working abroad can remain insured in their home country with an A1 certificate.
  
  Tip: Apply for A1 certificates before posting employees to avoid double contributions.


• Special rules for directors: In Austria, directors often fall under self-employed social security (SVS). In Slovakia or Romania, different rules may apply based on salary.
  
  Tip: If you have management roles in several countries, seek tailored tax and social security advice

5. Accounting and tax filing: What deadlines apply?

Each country has its own accounting and tax filing rules. Cross-border businesses must comply with the deadlines in each country.

Key points:

• Austria: Tax return by 30 June of the following year; double-entry bookkeeping mandatory for corporations.


• Slovakia: Tax return by 31 March of the following year, with a possible 3-month extension.


• Romania: Monthly or quarterly filing, depending on business size.
  
  Tip: Work with local tax advisors in each country to meet deadlines and optimise tax benefits.

6. Avoiding tax traps and finding optimisation opportunities

Every country offers tax benefits or special regulations.

Key points:

• Choose your location based on tax advantages (e.g., Romania’s corporate tax rate of just 16%)


• Reinvest profits to reduce taxable income
  
  Tip: If you regularly work across borders, develop a long-term tax strategy to avoid unnecessary costs.

Conclusion: Good planning is half the battle

Cross-border business brings many opportunities – and challenges. Those who address registration duties, tax rules, and social security early can avoid costly mistakes and make the most of available benefits.

Clear accounting, timely tax filings, and strategic planning are key to success.
If you operate in several countries, rely on professional tax advice to fully exploit your opportunities.

(This article is for general information only and does not replace professional legal or tax advice. For specific questions and personal support, feel free to contact us.)