Austria will exempt menstrual hygiene products and certain contraceptives from VAT from 1 January 2026, replacing a 10 % reduced rate. The Austrian Federal Competition Authority (BWB) is empowered to ensure the tax savings are passed on to consumers and can launch sector investigations if prices do not reflect the relief. This marks a novel use of competition law to safeguard the effectiveness of a gender‑focused social policy.
The exemption takes effect from 1 January 2026.
They were subject to a reduced VAT rate of 10 % before the exemption.
The Austrian Federal Competition Authority (BWB) can review the pass‑through of the tax reduction.
The BWB may initiate sector investigations (Branchenuntersuchung) under § 7 PreisG to examine non‑compliance with pass‑through obligations.
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