Austrian Parliament Finance Committee Approves Draft Bill to Reduce VAT rate on Select Basket of Basic Foodstuffs

The Austrian Parliament is considering a draft bill amending the VAT Act for the implementation of the VAT rate reduction on a select basket of basic foodstuffs, which was approved by the Finance Committee on 12 May 2026. In particular, the draft bill provides for a reduced VAT rate of 4.9% (down from 10%) on: milk (including lactose free), yogurt, butter, fresh chicken eggs, fresh or chilled vegetables (with some exclusions), frozen vegetables, edible fruits, rice, wheat flour and semolina,…