Austria’s €2 parcel levy hits Amazon, Temu and Zalando. Retailers go to court

Austria began charging a parcel levy of €2 per parcel or order on 1 October, the public broadcaster ORF and the daily Salzburger Nachrichten report. With VAT the charge comes to €2.40. It applies only to retailers with more than €100 million in annual sales in Austria.

Amazon, Temu and Ikea are among 16 sellers that pay

ORF counts 16 sellers above the threshold. They include Amazon, Temu, Zalando, Shop Apotheke, eBay, Otto, BestSecret, AliExpress, MediaMarkt, Apple, Universal, Ikea, Shein, XXXLutz and Refurbed. Salzburger Nachrichten adds that about 4,000 Austrian businesses that sell through large marketplaces are hit as well.

The list mixes Chinese platforms with European chains. Zalando already faces pressure at home, where it is closing its Erfurt hub.

Vienna expects €280 million a year

The government expects the levy to raise €280 million a year. The money partly pays for a lower VAT rate on some basic foods, which took effect on 1 July. Retailers say the charge will cut their sales, and several of them plan to fight it.

Zalando went to the constitutional court in August

Zalando filed a challenge at the Austrian Constitutional Court on 20 August. Amazon has questioned whether the law fits the constitution and the EU single market. Otto expects up to ten retailers to take legal action. The Austrian Retail Association, Handelsverband, is considering a complaint to the European Commission that could lead to infringement proceedings.

Marketplaces in Europe are already under strain. Earlier this week Rakuten France shut its marketplace after 26 years.

For a seller that ships one million orders a year to Austria, the levy adds €2 million before VAT. Whether it can pass that on depends on prices and on how the court rules on Zalando’s case.