Wave of Lawsuits Announced

Parcel Tax Could Lead to Billions in Refunds

The parcel tax takes effect in October.(Bild: APA/HELENA ECKEL, Krone KREATIV)

The parcel tax is on shaky legal ground. Major retailers are preparing lawsuits, and the government seems to be accepting this. After all, by the time the case is resolved, the current government will likely no longer be in office—but in an extreme scenario, the country could face a billion euros in refunds. Resistance is also coming from politicians—across party lines.

Starting in October, the government will impose the parcel tax directly on consumers; the finance minister is adding 2.40 euros to each shipment, on top of the EU parcel duty of three euros for Chinese retailers—neither of which exactly helps combat high inflation. However, the government aims to raise 280 million euros per year through the national parcel tax to help fund the reduction in food taxes.

Lawsuits Against the Tax Are Inevitable
“Several major retailers are already preparing lawsuits, however. In our view, this tax is untenable,” says Rainer Will, head of the Retail Association. One of them is certainly Harald Gutschi, CEO of the mail-order company Otto: “We will take legal action against it as soon as possible,” the executive announces. That will happen once the first contestable tax assessment is issued, likely in early 2027. 

One contentious issue is the 100-million-euro revenue threshold for retailers above which the tax applies. Some legal experts view this as arbitrary. It also clashes with the EU single market. Redcare Pharmacy, the parent company of Shop-Apotheke, likewise points to the EU level: The measure is not tenable under EU law, as it functions like a tariff that restricts the free movement of goods; this concerns fundamental principles of the EU. The renowned law firm Dorda also identifies a “violation of EU law” in an expert opinion prepared for the mail-order retailer Otto. However, this is of little help to consumers and retailers at the moment, as it will take years for the case to be decided. 

Rainer Will, head of the Trade Association, said: “Several retailers will take legal action against this.”(Bild: krone.tv )

If the case goes all the way to the European Court of Justice (ECJ), it could take up to four years for a decision to be reached. By then, the current government will no longer be in office. “It seems as though they’re consciously accepting this,” says Gutschi. If the tax is declared unlawful after four years, however, an expensive fiasco could ensue in the worst-case scenario. With 280 million euros collected annually, refunds totaling more than one billion euros could be on the table.

If the highest court declares a tax unlawful, revenue must generally be refunded; such cases have occurred frequently on the international stage, often involving large sums. In the case of the parcel tax, things can sometimes get complicated in practice: If retailers have simply passed the tax on to consumers, the affected consumers would have to go through a bureaucratic process of filing class-action lawsuits to reclaim the money.

However, the Ministry of Finance takes a rather relaxed view of the matter anyway. During a background briefing in early June, Finance Minister Markus Marterbauer said, “We will certainly win.” He is not concerned about this.

The finance minister likely has a guilty conscience himself; otherwise, he wouldn’t have concealed the true extent of his parcel tax for months.

Steiermarks Landeshauptmann Mario Kunasek (FPÖ)

Bild: Christian Jauschowetz

ÖVP Minister Has “No Joy” with Parcel Tax
But it’s not just the affected retailers and nitpicking lawyers who have issues with the tax; there’s resistance in political circles as well. ÖVP Minister of Economic Affairs Wolfgang Hattmannsdorfer told the “Krone” that he has “no joy with the parcel tax,” noting that the tax burden is already too high. However, he stands by it, as it was agreed upon within the coalition. NEOS Secretary-General Douglas Hoyos also recently made headlines, stating that the parcel tax is “fundamentally wrong” and that the SPÖ should reconsider.

The federal states are also very clearly opposed to the new tax. At the conference of economic affairs ministers in late May, all nine spoke out against it at Carinthia’s urging.

Kunasek: “The finance minister probably has a guilty conscience”
Speaking to the “Krone,” Styrian Governor Mario Kunasek (FPÖ) reiterated his opposition: “The parcel tax primarily affects people in rural areas, where shopping centers are far away. People there rely on mail-order shopping.” Kunasek believes the finance minister likely has “a guilty conscience himself; otherwise, he wouldn’t have concealed the true extent of his parcel tax for months.” Value-added tax of up to 20 percent is added on top, as has now come to light—resulting in 2.40 euros instead of 2 euros.

Criticism is also coming from the red state of Burgenland. State Minister of Economic Affairs Leo Schneemann (SPÖ) has a clear position. “The planned parcel tax is a tax on everyone—and that is precisely why we firmly reject it. In the end, it’s the people who foot the bill again: families, commuters, the elderly, and businesses that rely on a functioning delivery system,” he says, criticizing the idea put forward by his own party at the federal level.

Consumers Foot the Bill
Originally, the parcel tax was intended only for third countries, which is, however, extremely difficult to implement legally, as it amounts to a customs duty. It was only after the plastic tax was scrapped that the Ministry of Finance expanded the levy—one thing is certain: consumers will foot the bill.