Budget 2026 | Indirect tax measures

After long and challenging negotiations, the Federal Government has reached a budget agreement covering 2026-2029, as presented during the 26 November 2025 State of The Union in the Chamber of Representatives. 

Sixty percent of the effort will come from reducing public spending, with the remaining forty percent coming from new revenue measures. 

This alert provides a brief overview of the announced - but not yet confirmed - indirect tax measures. A more detailed tax alert will be released once legislative texts become available and the details are confirmed.

Indirect tax measures

VAT rate changes

There will be no general increase of the standard VAT rate from 21% to 22%. However, certain products will be subject to a higher VAT rate: hotels and campsites, sports and recreation services and take-away meals will change from the current 6% to 12% VAT. The VAT rate on pesticides will increase to the standard rate of 21% rate, while the VAT rate for non-alcoholic beverages will decrease from 21% to 12%. 

There will be no VAT increase on gas until 2030.

Excise duties

Excise duties on gas and domestic heating oil will gradually increase, whereas excise duties on electricity for residential use will decrease, although the reduction will be smaller than the increase applied to gas.The excise duties on diesel and petrol will also increase. 

Flight tax

The flight tax on flight tickets for short distances (maximum 500 kilometres) will increase to EUR 10 starting from 2027. In 2028 and 2029, the amount will yearly increase with EUR 0,50.

Levy on parcels

A EUR 2 levy will be imposed on parcels coming outside the European Union and with a value below EUR 150. 

National financial prosecutor’s office

A national financial prosecutor’s office will be established. This specialised unit will combat money laundering, tax evasion, corruption, and fraud, including cases involving cryptocurrencies.

The government plans to recruit 377 inspectors to support these efforts.