Austria – 4.9% VAT rate approved

Austria’s parliament has approved legislation that cuts the Value Added Tax (VAT) on essential foods from 10% to 4.9%, taking effect on 1st July 2026. The anti-inflation measure aims to reduce grocery costs that covers everyday items such as milk (including lactose-free), yogurt, butter, eggs, rice, wheat flour, semolina, most vegetables, fruit, pasta, and table salt.

The reduced VAT rate of 4.9% does not apply to these foods when sold at restaurants