Package tax: Amazon sees 'de facto discrimination,' Economy Ministry notes 'open questions'

Amazon has strongly criticized Austria's proposed 2-euro package tax, labeling it "de facto discrimination" against foreign online retailers. The e-commerce giant argues that the tax, which targets large online retailers with annual revenues exceeding 100 million euros, unfairly disadvantages businesses based outside Austria. Amazon contends that 14 out of 15 affected retailers are foreign, accounting for approximately 98 percent of the tax volume, thereby violating the EU's internal market principles.

The planned package tax is intended to help finance a reduction in the value-added tax on selected basic foodstuffs, set to take effect from July 1, 2026. The tax itself is slated to be implemented after September 30. The Finance Ministry estimates the tax will generate around 280 million euros annually.

Adding to the controversy, Austria's Ministry of Economy, led by the ÖVP, has expressed significant criticism of the draft law proposed by the Finance Ministry, led by the SPÖ. The Ministry of Economy cited "open interpretation and enforcement issues" regarding tax liability, particularly concerning returns, contract cancellations, and replacement deliveries. It also voiced "EU law concerns" and warned of potential "damage to the image" of Austria as a business location.

Other stakeholders have also voiced concerns. Retailers like Otto have announced legal action, citing legal opinions that deem the draft "unconstitutional and contrary to EU law." The FPÖ party warned of potential job losses. Conversely, consumer and trade unions (AK and ÖGB) expressed general understanding for the tax's goals but regretted that the original aim to tax only packages from outside the EU could not be realized. Environmental groups, such as Global 2000 and VCÖ, support taxing the growing volume of online trade packages for ecological reasons.