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.
From 1 July 2026.
5%, down from the previous 10%.
By introducing fees on parcels imported from third countries such as China.
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MarketScreener · about 10 hours 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 · 1 day 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 · 2 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.
Bloomberg Tax · about 2 hours ago
On December 23, 2025, Hungary enacted Decree No. 45/2025, setting new transfer‑pricing documentation thresholds. The decree requires local files for related‑party transactions above 150 million HUF and master files for those above 500 million HUF, while offering simplified documentation for low‑value services.
LinkedIn · about 2 hours ago
Advocate General Kokott’s Opinion C‑603/24 clarifies how intra‑group transfer price adjustments interact with VAT. The opinion states that such adjustments are not automatically a separate VAT supply, but may alter the taxable amount under Articles 73 and 90 of the VAT Directive if they reflect a variable purchase price agreed upfront. Only when an actual service for consideration exists is a separate supply considered.
SII Spain · about 5 hours ago
Spain has postponed the implementation of the Verifactu Ordinance to 2027, extending the original July 2025 deadline. An extraordinary opt‑out window for voluntary SII participants runs from 26 December 2025 to 31 January 2026, allowing withdrawal via Form 036/037 effective 1 January 2026. The decree also clarifies that mandatory SII participants cannot opt out and that non‑compliant invoicing software cannot be sold after 29 July 2025.
