Austria — VAT News

VAT in Austria: Six Month Into 2026 - New VAT Rates From July 1

The first half of 2026 brought several significant VAT developments in Austria. The most notable is the introduction of a new 4.9% VAT rate for specified essential foodstuffs, effective 1 July 2026. Other changes include a 0% VAT rate for feminine hygiene products and contraceptives, new VAT rules for high-value residential lettings, amendments to cash register requirements and revised Intrastat thresholds.

Law & Regulation·Jun 4

Austria Cuts VAT on Essential Foods to 4.9% From July 2026

Austria has approved a VAT reduction on essential foods from 10% to 4.9%, effective July 1, 2026, as an anti-inflation measure covering everyday items like milk, eggs, and vegetables.

Policy Development·May 9

Austria Opens Public Consultation on Comprehensive 2026 Tax Reform

Austria has launched public consultation on a comprehensive tax reform package covering income tax, VAT, anti-fraud measures, and administrative procedures. The consultation runs until 8 May 2026.

Administrative News·May 1

Austrian Court Confirms VAT Exemption Despite Transport Documentation Errors

Federal Finance Court ruled that formal deficiencies in bookkeeping or documentation do not preclude VAT exemption if cross-border movement of goods is established.

Policy Development·Jan 26

Austria Cuts Reduced VAT Rate to 5% on Selected Goods from July 2026

Austria will halve its reduced VAT rate from 10% to 5% on a defined basket of goods starting July 1, 2026, as part of broader anti-inflation measures.

Policy Development·Nov 28 2025

Austria's Parliament Advances Crypto Asset Reporting Framework

Austria's National Council accepted Bill 306 for further consideration, introducing DAC8 compliance requirements and CARF obligations for crypto-asset service providers, effective January 1, 2026.

Policy Development·Jun 27