Austria is one of the EU's wealthiest markets, and Austrian customers pay consistently strong prices for premium goods, homewares, and outdoor equipment. If you're shipping from the UK to Austrian customers, the customs rules are the same as for any other EU country, but there are a few practical considerations specific to Austria worth knowing.

What's changed since Brexit

Before January 2021, goods moved to Austria inside the single market with no customs formalities — no declarations, no duty, no VAT on entry. That changed completely with Brexit. Austria now treats UK parcels identically to parcels from any other non-EU country — there's a customs border, a declaration requirement, and import charges that the customer pays on delivery.

The result is that a customer in Vienna ordering a £150 product from a UK small business may receive a demand for an additional €30–40 from their courier before they can take the parcel. If they weren't warned, that's the moment they consider refusing delivery.

Austria's VAT rate

Austria's standard VAT rate is 20%. This is applied to the total customs value — your product price, plus the shipping cost — when the parcel clears Austrian customs. For most standard goods, there is no reduced rate at the border.

Import duty on UK goods

Under the UK-EU Trade and Cooperation Agreement (TCA), goods that are genuinely made in the UK qualify for 0% import duty when exported to Austria or any other EU member state. Handmade products, ceramics, candles, clothing made from UK fabric, jewellery, art — all of these typically attract zero duty provided the goods are of UK origin.

If your products are manufactured or significantly processed outside the UK before you sell them on, they may not qualify for preferential origin status. In that case, standard EU import duty rates apply — which for clothing can be 12%, and for footwear 3–17%. Check your commodity code to confirm what applies to your goods.

The €150 threshold — and what changed in July 2026

Until recently, consignments under €150 entered the EU free of customs duty. The EU abolished that exemption on 1 July 2026, so it's worth being precise about what still works and what doesn't.

IOSS remains the mechanism for VAT on lower-value orders. For B2C consignments where the goods themselves are worth up to €150 — intrinsic value, excluding shipping — Austrian VAT is collected at your checkout, either through your own IOSS registration or by platforms like Etsy, so your customer isn't chased for VAT at the door. What's new is that these low-value consignments moving through IOSS or the postal special arrangements now carry a flat customs duty of €3 per item, a temporary measure in place until 1 July 2028. It's levied on the seller or platform side, not billed to your customer on delivery.

Outside IOSS, standard tariff duty is now due at any value — unless your goods are UK-originating and you claim TCA preference with a statement on origin, which keeps the duty at 0%. And without IOSS, Austrian import VAT is collected from your customer on delivery whatever the order value, plus the carrier's handling fee. The days of small parcels sailing through without anyone paying anything are over.

A practical example

A UK leather goods maker sends a handmade bag worth £150 to a customer in Salzburg.

Worked example — leather goods to Austria

Product value: £150

Shipping: £16

Import duty: £0 (0% under TCA for UK-made leather goods, with a statement on origin)

Austrian VAT (20%): £33

Customs handling fee: ~£8

Total additional cost to the customer on delivery: ~£41

The customer paid £150 plus shipping at checkout. They're now asked for £41 more before delivery. For a £150 purchase, that's a 27% surcharge on arrival — significant enough to cause a refusal if it comes as a surprise.

A note on geography

Austria is landlocked — there are no direct sea freight routes, and airfreight or road transit through Germany is the standard route for UK shipments. Transit times from the UK are typically 4–6 working days for standard courier services, slightly longer than coastal EU countries. Build this into your estimated delivery times and communicate it clearly to Austrian customers.

What you can do

Know your landed cost before you list a product for sale. ClearShip calculates the full landed cost for UK-to-Austria shipments — enter the product value, weight, and destination, and you'll see the complete cost breakdown your customer faces.

Once you know the number, communicate it. A simple note on your listing — "Austrian customers: unless VAT was collected at checkout, import VAT of 20% is charged on delivery, whatever the order value" — prevents the shocked reaction at the door. For your most loyal Austrian repeat customers, consider DDP shipping where you handle the charges upfront and build them into your price. It removes the delivery surprise entirely and is increasingly what Austrian buyers expect from UK sellers they purchase from regularly.