- Austria will halve VAT on essential food products from 10% to 5% starting July 1, 2026, to help households with high living costs.
- The government will introduce a tax on non-recyclable plastic and fees on parcels from non-EU countries to help finance the VAT cut.
- The measure aims to lower grocery bills, deliver immediate savings, and reduce inflation to around 2%.
- The exact list of food products eligible for the reduced VAT rate has not yet been published.
- Similar VAT reductions have been announced in Sweden and Denmark.
Source: fiscal-requirements.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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