Austria implements new parcel tax on large online retailers

Austria has implemented a new parcel tax targeting large-scale online retailers with annual domestic shipping revenues exceeding 100 million euros. The levy, which amounts to two euros per package or per order, is intended to reduce the volume of online deliveries, protect local brick-and-mortar retail, and mitigate environmental impacts.

Some major retailers, including Amazon, Temu, and Shein, are expected to be affected. Early reports indicate that some companies are already passing these costs on to consumers, which could increase the price of a standard order by up to 2.40 euros when including VAT. The Austrian government intends to use the revenue to finance a reduction in value-added tax (VAT) on selected food items.

The measure has sparked political debate within the governing coalition. While the tax aims to support local economies and the climate, leaders from the NEOS party have criticized the implementation, suggesting alternative funding methods such as reallocating funds from education or direct subsidies. Critics from the Freedom Party (FPÖ) have also characterized the tax as an additional burden on businesses and citizens in an already high-tax environment.