Austria's new parcel tax impacts large retailers and local trade

A new parcel tax in Austria, effective October 1, is impacting large-scale shipping retailers with annual revenues exceeding 100 million euros. The tax imposes a fee of 2 euros per package or order, totaling 2.40 euros including VAT.

While intended to target major online corporations such as Amazon, Temu, Zalando, and Apple, the Handelsverband warns of unintended consequences for local brick-and-mortar retail. To avoid multiple fees, consumers are increasingly bundling various products into single large online orders. This shift in purchasing behavior may reduce the likelihood of customers making smaller, spontaneous purchases at physical stores.

Approximately 4,000 Austrian retailers who sell via platforms like Amazon or eBay are also affected. Responses from major companies vary: Amazon is passing the cost to customers, whereas Ikea and XXXLutz are currently absorbing the tax. The Austrian Ministry of Finance expects the tax to generate approximately 280 million euros annually, intended to help partially finance VAT reductions on certain basic foodstuffs.