"Surcharge" on customers

Tax to Apply to Domestic Packages as Well

The federal government has now presented the draft bill for the planned parcel levy (stock image).(Bild: RONALD RAMPSCH)

On Monday, the government presented the draft bill for the planned parcel tax—and now criticism is mounting. This is because the original plan to introduce the tax only for shipments from third countries could not be legally implemented. Therefore, domestic parcels are also to be included starting in late September.

According to the draft bill, the tax in this case amounts to two euros per shipment. It applies only to transactions with end customers; B2B online shops are therefore exempt. Additionally, the regulation applies only to mail-order companies with annual sales exceeding 100 million euros. This affects, for example, the major platforms Temu and Shein, as well as Austrian retailers such as the Otto Austria Group and Electronic4you.

The federal government has now presented the draft bill for the planned parcel tax (stock image).(Bild: RONALD RAMPSCH)

Austrian companies that do not reach the revenue threshold but offer their products via large platforms and marketplaces must also pay the parcel tax. In such cases, the platform—for example, Amazon—is considered the mail-order company and must remit the tax. If customers purchase a product directly in a store that must first be ordered, no tax is due. The same applies if business owners deliver the goods themselves.

These are the key points of the planned tax:

280 million euros in revenue
According to the Ministry of Finance, the parcel tax is expected to generate around 280 million euros annually. This is intended to partially finance the VAT reduction on selected staple foods starting July 1, 2026. The parcel tax itself is scheduled to take effect after September 30.

“An own goal even before the World Cup”
As reported, the parcel tax was originally intended only for shipments from third countries. “It is being sold as a measure against Temu and Shein, but in reality, it is primarily Austrian and European retailers who operate in compliance with the law who are footing the bill. The actual perpetrators of the distortion of competition will continue to circumvent the system,” the Trade Association criticized in a press release on Tuesday. Austria is scoring “an own goal even before the start of the World Cup.” Instead, the Trade Association called for, among other things, more controls in e-commerce and an expansion of platforms’ liability for the correct payment of VAT.

FPÖ: “A blow to consumers’ wallets”
According to the Trade Association, 4,000 Austrian small and medium-sized enterprises would be affected by the parcel tax. The FPÖ also criticized the government’s plan. “Under the pretext of taxing international online companies, a direct attack is being launched on domestic commerce and citizens’ wallets,” said Secretary General Michael Schnedlitz. Retailers Otto Austria and XXXLutz see legal issues; Otto announced it would take legal action against the measure.

The European Union has announced that it will introduce a processing fee for small parcels from third countries starting November 1—in addition to a customs duty of three euros beginning in July 2026. The rationale cited included “unfair competition for EU companies” and environmental concerns.