Austria to reduce VAT on essential food items from July 2026

28 January 2026

Austria has announced that the VAT rate on a selected group of essential food items will be reduced from 10% to 5% from 1 July 2026. The government has not yet published the definitive list of products that will fall within the scope of “essential food items”.

The measure forms part of a wider government strategy to ease cost‑of‑living pressures in the country.

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