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Austria food VAT cut to 4.9%: what it means for your prices

Since 1 July 2026, milk, yoghurt, butter, eggs, bread, pasta, rice, flour and some fruit and vegetables pay 4.9% VAT instead of 10%. Retailers passed it on, so these products became about 4.6% cheaper than the cheese, meat and cocoa drinks beside them. We measure what that did to your sales and plan your next prices.

From £7,500 (about €9,000), fixed About 3 weeks for up to 10 products Under NDA from the first day
Free and instant

Check one shelf price

The price if the cut is passed on in full. Nothing you type leaves this page.

Checking
With 10% VAT
With 4.9% VAT

That's the easy part. What the lower price did to your volume, and to the products next to it, depends on how shoppers react to price. That's what we measure.

Book a free 15-minute call

VAT at 10% before 1 July 2026 and 4.9% since, on the products listed in Annex 3 of the Austrian VAT Act.

What you get

A VAT cut review for Austria

What the cut did to each product's sales, measured from your own data, and the prices to set next, for listed products and the ones beside them.

  • What the July price drop did to each product's sales, measured from your own data
  • How strongly your shoppers react to price, learned from the cut
  • Which unlisted products lost sales to cheaper listed ones
  • A price plan for each retailer, and an Excel model
Example

How your results look

ProductVAT since JulyOur advice
Milk, 1 litre4.9%, was 10%Hold the net price
Yoghurt, 500g4.9%, was 10%Grow volume at the new price
Cocoa drink, 500mlStill 10%Watch the gap to milk

Fictional products. Every real result comes with the expected sales and profit, and a likely range.

Your options

Every option has a fixed price, agreed before we start.

Up to 10 products

VAT cut review

from £7,500
about €9,000
About 3 weeks
  • What the cut did to each product, and the best price
  • Price plan for each retailer
  • Scenario model and a walk-through
11 to 50 products

Pricing review with the VAT cut

around £17,500
about €21,000
4 to 5 weeks
  • Everything in the VAT cut review
  • Prices and promotions for the whole range
  • How your products take sales from each other
More than 50 products

Portfolio review

Quoted
Scoped on the call
  • Everything in the pricing review
  • More retailers and data sources
  • A plan for each channel

After the project: a refresh before each pricing round, from £2,000 (about €2,400). Prices are fixed in pounds sterling; amounts in euros are a guide at October 2026 exchange rates. We're based in the UK and work remotely, in English, under NDA.

How it works

From the first call to your plan in about three weeks.

  1. A free 15-minute call

    Tell us about your range. We say whether a review would pay for itself, and quote a fixed price.

  2. Your data

    Sales by product and retailer, recipes and costs. We sign an NDA before anything moves.

  3. Your plan

    What the cut did to your sales, and a price plan for each product, walked through with your team.

Austria food VAT cut: the detail

Open only what you need.

Rate
4.9% instead of 10% since 1 July 2026, with no end date set
Law
Section 10(1a) of the Austrian VAT Act (UStG 1994), Federal Law Gazette I No. 37/2026; the products are listed by customs code in Annex 3
Products
Milk including lactose-free milk, yoghurt, butter, fresh hen's eggs, many fresh and frozen vegetables, apples, pears, quinces and stone fruit, rice, wheat flour and semolina, unfilled uncooked pasta, bread and rolls, and table salt
Not included
Cheese, meat, fish, oils, other fruit such as citrus, bananas and berries, cocoa drinks, products mixed with other foods, and restaurant and catering sales
Passed on
The Chambers of Labour of Vienna and Styria checked 919 prices in July 2026 and found the cut passed on in full by every chain
Cost
About €400 million a year from 2027, according to the Finance Ministry
When your product is on the list

Hold the net price

Let the shelf price fall by the VAT, and keep your own price where it was.

When the cut lifted volume

Measure it

The cut is a clean price test: it shows how strongly your shoppers react to price.

When your product isn't on the list

Mind the gap

Cheese or cocoa drinks beside cheaper listed products may need a price or promotion response.

What is the VAT on food in Austria?

Since 1 July 2026, 4.9% on listed basic foods such as milk, yoghurt, butter, eggs, bread, pasta and rice. Most other food pays 10%.

Which foods have 4.9% VAT in Austria?

Milk, yoghurt, butter, fresh eggs, many fresh and frozen vegetables, apples, pears and stone fruit, rice, wheat flour, semolina, unfilled pasta, bread and table salt, as listed in Annex 3 of the VAT Act.

Is cheese included in Austria's VAT cut?

No. Cheese, meat, fish, oils and cocoa drinks stay at 10%.

Was the VAT cut passed on to shoppers?

Yes. The Chambers of Labour of Vienna and Styria found it passed on in full by every chain they checked in July 2026.

How much does a VAT cut review cost?

A review of up to 10 products has a fixed price from £7,500 (about €9,000) and takes about three weeks. For 11 to 50 products, a full pricing review costs around £17,500 (about €21,000). It starts with a free 15-minute call.

Do you work with brands in Austria?

Yes. We're based in the UK and work remotely and in English, under NDA. Prices are fixed in pounds sterling before we start, and the first step is a free 15-minute call.

VAT cut review|from £7,500 (about €9,000)|about 3 weeks

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