Austria raises parcel tax to €2.40 inclusive of VAT

Austria’s controversial parcel tax, originally presented as a €2 charge, will be €2.40 from 1 October after applying the standard 20 % value‑added tax. The tax applies to online retailers with annual sales above €100 million, directly affecting platforms such as Amazon, Otto and Temu, and indirectly around 4,000 smaller Austrian sellers using online marketplaces.

The finance ministry expects the levy to generate about €280 million per year, which will be used to partially offset the upcoming reduction of VAT on selected basic food items slated for 1 July. Opposition parties and business groups have criticised the measure, arguing it raises costs for consumers without ecological benefit. NEOS urged the SPÖ to reconsider the tax, while the Greens called it an unfair revenue source.

The debate highlights broader tensions over how to fund the food‑VAT cut and the impact of tax policy on e‑commerce and small retailers in Austria.