Information about agency representation

Have you ever considered having your royalties managed by an agency? Do you expect this to result in higher or earlier payments from abroad? Before you entrust an agency with the management of your royalties, we would like to inform you about the additional costs this will incur. You can find more detailed information below.

Agencies as VdFS administrators

We are fundamentally committed to our beneficiaries and not to agencies that earn money from you as clients.

Registration with a collecting society is generally free of charge. We would like to inform you that royalties from abroad will continue to be collected and forwarded by us without any deductions. In this context, please note the information provided at www.vdfs.at/faq/.

The administration of your royalties by an agency will incur costs, as the agency charges fees for the work involved, such as the preparation of work reports. In addition, administration will become more complex for you from a tax perspective, as you will have to provide the necessary proof of residence for all foreign collecting societies with which you are registered. Otherwise, you risk losing up to 20% in withholding tax. For funds from Switzerland or other foreign currency countries, additional transaction fees may be charged by your bank.

Expense deductions and billing periods of collecting societies

Finally, we would like to point out that agencies have no influence on the amount of royalties, expense deductions, or settlement deadlines of collecting societies. Royalties are paid out by collecting societies. There is no provision for payment free of charge, nor does it take precedence over other beneficiaries if an agency has been commissioned to represent them.

Royalty payments from abroad

The VdFS has numerous reciprocal agreements with sister societies abroad. These enable efficient settlement of royalties from abroad, which are forwarded to you by the VdFS without any deductions.

Persons who are not resident in Austria are required to submit an annual confirmation of residence to the VdFS in order to avoid withholding tax. This confirmation should ideally be submitted at the beginning of the year.

In accordance with European Union regulations, you will not lose any money abroad. Thanks to reciprocal agreements between the VdFS and foreign companies in neighboring countries, you will always receive your foreign royalties through the VdFS – without any deductions.

We would like to point out that the annual administrative effort for you is very manageable. The VdFS conducts research and integrates transmission data that it receives from external providers via digital databases. In addition, it offers you the option of submitting notifications quickly and easily yourself via the “MyVdFS” online portal. Ultimately, transparency is particularly important to the VdFS. 

We would therefore like to draw your attention to the fact that you are welcome to contact us before commissioning an agency to manage your royalties. You can reach us at any time by phone at +43 (0) 1 504 76 20 or by email at office@vdfs.at.