From 1 July 2026, Austria has introduced a reduced VAT rate of 4.9% for a selection of essential food products, replacing the previous reduced rate of 10%.
The 4.9% rate applies only to products that correspond exactly to the tariff codes listed in the new Schedule 3. Processed or composite products not falling within those classifications remain subject to the 10% reduced rate.
The main categories covered include milk (including lactose-free), yoghurt, butter, fresh eggs, fresh, chilled or frozen vegetables (subject to certain exclusions), selected fruits, rice, wheat flour and semolina, dried unfilled pasta, bread and food salt.
The Austrian Authorities clarify that determining the applicable rate rests solely on customs classification. This requires precise verification of the tariff codes for each product.
