Sweden is considering different VAT rates for food

Sweden food VAT could be redesigned after the government announced a new inquiry into whether different food products should be taxed at different rates, with the stated aim of keeping down the cost of “particularly necessary” groceries for households. The proposal comes after Sweden temporarily halved VAT on food from 12 percent to 6 percent. The current reduction entered into force on 1 April 2026 and is due to remain in place until 31 December 2027. The new inquiry will examine whether a more selective system could replace or complement the temporary measure. Government wants cheaper basic groceries The Swedish government says the inquiry will look at how food VAT rates could be differentiated so that certain products receive a lower tax rate than others. The focus is on everyday groceries that many households buy regularly. Minister for Finance (Finansminister) Elisabeth Svantesson said the aim is to reduce the cost of basic food purchases. “We want to examine how VAT on food can be differentiated in order to keep down the costs of households’ purchases of particularly necessary food items that many hard-working Swedes buy every week,” Svantesson said in the government’s announcement. The inquiry has been asked to define … The post Sweden is considering different VAT rates for food appeared first on NordiskPost .