Parcel levy in Austria to cost up to 2.40 euros per shipment from October

The parcel levy will in future apply to large online retailers with annual revenues of more than 100 million euros. According to the Trade Association, a total of 16 online retailers and marketplaces will be directly affected, including Amazon, Otto, and Temu. Indirectly affected would also be around 4,000 Austrian retailers who sell their goods via online marketplaces.

Affected Companies and Retailers

For books, a reduced VAT rate of 10 percent continues to apply in Austria. In this case, the parcel levy including VAT will amount to "only" 2.20 euros. This means the additional burden on book orders will be lower than for other goods.

The Ministry of Finance expects annual revenues from the parcel tax of 280 million euros. These revenues are to finance, among other things, a planned VAT reduction on selected staple foods from January 1, 2027. This is intended to ease the burden on consumers in their daily shopping.

Use of the Revenues

The NEOS voted in favor of the levy in the National Council "out of coalition loyalty," according to their own statements. At the same time, the governing party continues to criticize the design of the tax. NEOS Secretary General Douglas Hoyos told the "Krone": "We continue to appeal to the SPÖ to take the loud criticism and the concerns of the industry seriously and to reconsider the desire for a parcel tax."

The SPÖ, which has significantly advanced the parcel levy, is thus facing criticism from its own government camp. The NEOS are calling on the Social Democrats to take greater account of the concerns of the retail industry and to revise the tax if necessary.

Criticism from the Business Community

In the parliamentary review process for the parcel levy, the majority of submissions were critical. The Chamber of Commerce, the Trade Association, and numerous logistics companies had expressed concerns about the planned levy. They fear competitive disadvantages for domestic retailers and rising prices for end consumers.

Otto Austria chief Harald Gutschi, who is considered a sharp critic of the parcel tax, had already pointed out in June that the parcel levy including VAT would amount to up to 2.40 euros. He sees this as a significant burden on online retail in Austria and warns of a migration of buyers to foreign providers.

Impact on Consumers

Critics argue that the parcel levy will ultimately be borne by consumers, as retailers may factor the additional costs into their prices. Supporters, on the other hand, see the levy as an effective instrument for leveling the playing field between domestic retail and international online giants.

With the parcel levy, the government aims to create fair competitive conditions in retail while simultaneously generating additional revenues for budget consolidation. The revenues of 280 million euros per year are an essential component of the government's financial planning.

The introduction of the parcel levy from October 2026 gives affected companies only a few months to adapt their systems and pricing. Industry representatives are calling for a longer preparation period and clear implementation provisions to avoid legal uncertainties.

Open Questions on Implementation

It remains unclear how the levy will be collected administratively. Open questions concern retailers' reporting obligations, processing via the tax authorities, and possible transitional arrangements for existing contracts between marketplaces and retailers.

The final design of the parcel levy is expected in the coming weeks. The NEOS have announced that they will continue to critically monitor the issue and advocate for improvements. Whether there will be changes to the tax remains to be seen.

What is certain is that the parcel levy will come into force from October 2026. For consumers, this means that orders from large international online retailers could become noticeably more expensive. The actual impact on ordering behavior and domestic retail will only become apparent after it comes into force.

The debate over the parcel levy is part of a broader discussion about the taxation of the digital economy. With this measure, Austria is following an international trend whereby large online platforms are to be called upon to a greater extent to finance public tasks.