Austria has passed an amendment to its VAT law imposing a new 4.9% reduced VAT rate on certain essential food items. The new rate will take effect on July 1, 2026. The rate will apply to milk, yogurt, butter, eggs, vegetables, certain fruits, flour, rice, uncooked pasta, bread, and table salt.
Austria Introduces New VAT Rate on Essential Food Items
Andrew Decker
June 16, 2026
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Author
Andrew Decker
Andrew Decker is a Regulatory General Counsel at Sovos within the Regulatory Analysis & Design Department. Andrew focuses on international VAT and GST issues and domestic sales tax issues. Andrew received a B.A. in Economics from Bates College and J.D. at Northeastern University School of Law. Andrew is a member of the Massachusetts Bar.
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