Austria will permanently cut the VAT on basic food items from 10% to 5% effective mid‑2026, a 50% reduction that the Austrian National Bank estimates will lower inflation by 0.5 percentage points one‑off. The move, welcomed by the Austrian Retail Association, is intended to provide lasting relief to consumers and is expected to be passed on by retailers where possible.
The reduction will take effect in mid‑2026.
The new VAT rate will be 5%, down from 10%.
The bank estimates a 0.5 percentage point reduction in inflation on a one‑off basis.
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Just Food · about 12 hours ago
Austria will reduce the VAT on certain food items from 10% to 5% mid‑2026, a measure financed by a new tax on non‑recyclable plastics. The specific foodstuffs eligible for the discount are yet to be defined, and the competition authority will enforce the reduction and ensure retailers pass the benefit to consumers.
VatCalc · 1 day ago
The Austrian government will cut the VAT rate on a basket of essential food items from 10% to 5% starting 1 July 2026, a move aimed at easing inflationary pressures. The measure was confirmed on 14 January 2026 and will be counter‑financed by fees on imported parcels from third‑country suppliers such as China.
MarketScreener · 1 day ago
The Austrian government announced that it will halve the VAT rate on essential food items as part of its fiscal policy. The change is expected to provide relief to consumers on basic groceries. No further details on the effective date or specific rates were disclosed in the article.
Fiscal Requirements · 3 days ago
Austria is modernising its fiscal cash register regime from 2026, raising the small‑seller exemption threshold to €45,000, making the 15‑product‑group recording rule permanent, and allowing optional digital receipts from 1 October 2026. Paper receipts remain available on request, while core security features such as secure recording, digital signatures and QR‑coded receipts stay unchanged.
Bloomberg Tax · 4 days ago
The Austrian Federal Ministry of Finance posted a Federal Finance Court decision clarifying liability for standard consumption tax (NoVA) and VAT on cross-border vehicle acquisitions. The ruling addresses the taxpayer’s center of life and the statute of limitations for assessments, upholding the Austrian Tax Office’s assessment in a case involving a German citizen residing in Austria who purchased a vehicle in Germany. The court dismissed the taxpayer’s arguments that the center of vital interests was in Germany and that the assessments were time-barred.
SPL · about 5 hours ago
Cyprus has extended deadlines for VAT, VIES, and the Special Taxi Scheme to 20 January 2026, allowing submissions and payments without penalties. Businesses must be aware of the new penalties that will apply after this date. The extension covers VAT returns for the period ending 30 November 2025, VIES returns for December 2025, and the flat‑rate scheme for urban taxis from 1 July to 31 December 2025.
