The Austrian government will cut the VAT rate on a basket of essential food items from 10% to 5% starting 1 July 2026, a move aimed at easing inflationary pressures. The measure was confirmed on 14 January 2026 and will be counter‑financed by fees on imported parcels from third‑country suppliers such as China.
From 1 July 2026.
5%, down from the previous 10%.
By introducing fees on parcels imported from third countries such as China.
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MarketScreener · about 12 hours ago
The Austrian government announced that it will halve the VAT rate on essential food items as part of its fiscal policy. The change is expected to provide relief to consumers on basic groceries. No further details on the effective date or specific rates were disclosed in the article.
Fiscal Requirements · 1 day ago
Austria is modernising its fiscal cash register regime from 2026, raising the small‑seller exemption threshold to €45,000, making the 15‑product‑group recording rule permanent, and allowing optional digital receipts from 1 October 2026. Paper receipts remain available on request, while core security features such as secure recording, digital signatures and QR‑coded receipts stay unchanged.
Bloomberg Tax · 3 days ago
The Austrian Federal Ministry of Finance posted a Federal Finance Court decision clarifying liability for standard consumption tax (NoVA) and VAT on cross-border vehicle acquisitions. The ruling addresses the taxpayer’s center of life and the statute of limitations for assessments, upholding the Austrian Tax Office’s assessment in a case involving a German citizen residing in Austria who purchased a vehicle in Germany. The court dismissed the taxpayer’s arguments that the center of vital interests was in Germany and that the assessments were time-barred.
Macfarlanes · about 1 hour ago
The UK Supreme Court ruled on 15 January 2026 that VAT on professional costs incurred in connection with a VAT‑exempt share disposal is not recoverable, rejecting any general fundraising exception. The decision applies to corporate groups where the parent provides taxable management services to a subsidiary, confirming that share sales remain within the scope of VAT but exempt, and that VAT grouping does not alter this treatment. Taxpayers must therefore plan for non‑recoverable transaction costs when restructuring or disposing of subsidiaries.
Bloomberg Tax · about 1 hour ago
An Advocate General for the European Court of Justice has opined that transfer price adjustments made by Stellantis Portugal to dealership sales are not subject to VAT, as they are considered alien to VAT law. The opinion, issued Thursday, is not binding on the court, and the ECJ decision remains unscheduled. The case centers on Stellantis's retroactive price adjustments to ensure a basic profit margin for local dealerships.
Bloomberg Tax · about 3 hours ago
On December 23, 2025, Hungary enacted Decree No. 45/2025, setting new transfer‑pricing documentation thresholds. The decree requires local files for related‑party transactions above 150 million HUF and master files for those above 500 million HUF, while offering simplified documentation for low‑value services.
