- Austria will introduce a new reduced VAT rate of 4.9% for certain essential food products starting July 1, 2026.
- The 4.9% rate applies only to products explicitly listed in Annex 3 of the law and matching specific Combined Nomenclature (CN) codes.
- Mixed or composite products and items not exactly matching the CN codes are excluded from the reduced rate.
- A hierarchy of VAT rates is established: 4.9% (if listed), then 10%, then 13% if the lower rates do not apply.
- Businesses must ensure correct product classification to apply the right VAT rate and avoid tax risks.
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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