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.
The VAT reduction from 10% to 5% is scheduled to take effect mid‑2026.
The cut will be financed by a tax on non‑recyclable plastics.
The VAT rate will be 5% instead of the current 10% for those items.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
VatCalc · about 19 hours 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 · 2 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 · 3 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.
Global VAT Compliance · about 4 hours ago
The European Court of Justice ruled that Croatian VAT authorities cannot deny intra‑Community supply exemptions solely because a trader has not supplied the specific evidence required under Article 45a of Implementing Regulation No 282/2011. The court requires a full assessment of all evidence to determine whether goods were dispatched or transported between Member States. Businesses can still claim the exemption if alternative evidence demonstrates transport between Croatia and Slovenia.
GOV.UK · about 4 hours ago
The VAT Refunds Manual is an HMRC internal guidance document outlining procedures for traders to claim VAT refunds. It covers eligibility, claim requirements, time limits, verification, handling of abusive or unjust enrichment claims, end‑customer refund claims, refusal procedures, appeals, and penalties.
