Rules by country / Europe / Austria food VAT cut
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.
VAT at 10% before 1 July 2026 and 4.9% since, on the products listed in Annex 3 of the Austrian VAT Act.
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
How your results look
| Product | VAT since July | Our advice |
|---|---|---|
| Milk, 1 litre | 4.9%, was 10% | Hold the net price |
| Yoghurt, 500g | 4.9%, was 10% | Grow volume at the new price |
| Cocoa drink, 500ml | Still 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.
VAT cut review
- What the cut did to each product, and the best price
- Price plan for each retailer
- Scenario model and a walk-through
Pricing review with the VAT cut
- Everything in the VAT cut review
- Prices and promotions for the whole range
- How your products take sales from each other
Portfolio review
- 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.
A free 15-minute call
Tell us about your range. We say whether a review would pay for itself, and quote a fixed price.
Your data
Sales by product and retailer, recipes and costs. We sign an NDA before anything moves.
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
Hold the net price
Let the shelf price fall by the VAT, and keep your own price where it was.
Measure it
The cut is a clean price test: it shows how strongly your shoppers react to price.
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.
- Austrian Parliament, finance committee approves the VAT cut on basic foods (12 May 2026)
- Deloitte Austria, VAT on basic foods falls to 4.9% from 1 July 2026
- Vienna.at, Chamber of Labour confirms supermarkets pass on the tax cut
Checked on 25 October 2026. Rules and rates change, so check the official source before making decisions. This page is not tax advice.