Austria's Ministry of Finance Releases Draft Bill to Reduce VAT rate on Select Basket of Goods

Austria's Ministry of Finance has released a draft bill amending the VAT Act for the implementation of the VAT rate reduction on a select basket of goods announced in January as part of the government's reform plans in 2026. In particular, the draft bill provides for a reduced VAT rate of 4.9% 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;
• Uncooked, u…