Austria implements new package tax on large online retailers

As of October 1, a new package tax has been implemented in Austria, affecting large online retailers with an annual turnover exceeding 100 million euros. The levy amounts to 2 euros net per package, which results in a total cost of 2.40 euros for customers including VAT.

Major retailers such as Amazon, Zalando, and Otto are reportedly passing this cost directly to consumers at checkout. The tax is intended to help finance the reduction of VAT on essential staple foods, which saw rates drop from 10 percent to 4.9 percent earlier this year. While the Ministry of Finance expects to generate approximately 280 million euros in annual revenue, this falls short of the 400 million euros lost due to the VAT cuts.

Several exemptions apply to the new tax. It does not affect private sales through platforms like Willhaben or Vinted, food deliveries, or the delivery of newspapers and magazines. Smaller online shops falling below the turnover threshold and purchases made in-store for subsequent home delivery are also exempt.