Austria will exempt menstrual hygiene products and certain contraceptives from VAT from 1 January 2026, replacing a 10 % reduced rate. The Austrian Federal Competition Authority (BWB) is empowered to ensure the tax savings are passed on to consumers and can launch sector investigations if prices do not reflect the relief. This marks a novel use of competition law to safeguard the effectiveness of a gender‑focused social policy.
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Law360 · 3 days ago
EU: The Court of Justice of the European Union ruled that Austria's VAT exemption for certain banking and insurance transactions was state aid. The ruling invalidates the Austrian law that provided a value-added tax exemption for those sectors.
TaxFoundation · 25 days ago
The article lists the 2026 VAT registration exemption thresholds for 32 European countries, highlighting recent changes such as Hungary’s increase to 20 million HUF, Poland’s rise to 240,000 PLN, and Romania’s jump to 395,000 RON. It also notes Belgium’s pending 30 000 € threshold and Switzerland’s highest absolute threshold of CHF 100,000.
The Cattle Site · about 2 months ago
Austria’s parliament approved legislation halving the VAT on essential food items to 4.9% from 10% effective 1 July 2022. The measure covers staples such as milk, bread, eggs, rice, flour and selected fruits and vegetables, and is expected to save households about €100 a year.
The Poultry Site · about 2 months ago
Austria has approved legislation to halve the VAT on essential food items, reducing the rate from 10% to 4.9% effective 1 July 2026. The measure covers staples such as milk, bread, eggs, rice, flour, and certain fruits and vegetables. The government estimates the cost at €400 million and household savings of about €100 per year.
VatCalc · about 2 months ago
Austria is proposing a €2 delivery tax on B2C e-commerce parcels from large sellers, effective 1 October 2026, payable by the seller and triggered upon payment acceptance. The measure targets sellers with >€100 million in Austrian distance sales and aligns with the EU's upcoming €3 customs levy on low-value imports from 1 July 2026. Consultation on the proposal runs until 26 May 2026.
Kancelaria Skarbiec · 3 months ago
The article analyzes the CJEU ruling in Titanium Ltd v. Finanzamt Österreich (C-931/19) and its implications for fixed establishment and reverse charge in cross‑border B2B services. It clarifies that a fixed establishment requires permanent human and technical resources, and that the reverse charge applies when such an establishment exists. It also notes that Article 47 lex specialis applies to services linked to immovable property, making VAT payable in the Member State where the property is located regardless of a fixed establishment.
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Key Takeaways
The exemption takes effect from 1 January 2026.
They were subject to a reduced VAT rate of 10 % before the exemption.
The Austrian Federal Competition Authority (BWB) can review the pass‑through of the tax reduction.
The BWB may initiate sector investigations (Branchenuntersuchung) under § 7 PreisG to examine non‑compliance with pass‑through obligations.
Primary source
Read the full article at Wolters KluwerThis summary was published on VATfaqs.com on 23 February 2026. It relates to VAT developments in Austria. The original source is Wolters Kluwer.
