- Halving VAT on Basic Goods: The Austrian Federal Government will reduce VAT on a selected basket of goods to just under 5% starting in July 2026, aiming to alleviate the financial burden of rising prices on consumers.
- Ensuring Price Pass-Through: The government emphasizes that the VAT reduction should result in lower prices for consumers, with measures in place to enforce compliance and transparency in pricing.
- Counter-Financing for VAT Reduction: The VAT cut will be financed through measures such as fees on parcels from non-EU countries, ensuring that the reduction does not negatively impact the government’s budget.
Source bundeskanzleramt.gv.at
- Austria will halve VAT on selected essential foods from 10% to 5% starting July 1, 2026.
- The measure aims to address high inflation and ease cost-of-living pressures on households.
- The decision was confirmed on January 14, 2026, amid ongoing concerns about elevated daily shopping costs.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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