Austria to implement new parcel tax on large online retailers

Austria is set to implement a new parcel tax starting October 1, 2026. The tax applies to mail-order retailers with annual revenues exceeding 100 million euros, imposing a fee of two euros per package, or 2.40 euros including VAT.

The Austrian government expects to generate approximately 280 million euros annually from this tax, which is intended to fund VAT reductions on basic foodstuffs. The Handelsverband reports that 16 major online retailers and marketplaces, including Amazon, Otto, Temu, and Zalando, will be affected.

To avoid or reduce costs, consumers can bundle orders, shop at smaller retailers below the revenue threshold, purchase used goods, or opt for in-store pickup. Certain deliveries, such as newspapers, pizza, and non-packaged food items, are exempt from the tax. It is anticipated that affected companies will pass these additional costs on to consumers through higher product prices or shipping fees.