Denmark wants to combat ‘reading crisis’ by abolishing VAT
- Abolishment of VAT on Books: Denmark is eliminating the 25% VAT on books to encourage reading, as the government believes the high tax contributes to a “reading crisis” in the country.
- Economic Impact: The removal of the VAT will result in an annual revenue loss of approximately 330 million kroner (around €44 million) for the Danish government, but Minister of Culture Jakob Engel-Schmidt expresses pride in investing significantly in cultural initiatives.
- Comparative VAT Rates: While Denmark’s previous VAT rate on books was among the highest globally, other Scandinavian countries have lower rates—Finland at 14%, Sweden at 6%, and Norway at 0%. The initiative has drawn positive reactions from organizations like the CPNB, which hopes it inspires similar actions in other countries.
Source Taxence
- Abolition of Sales Tax on Books: The Danish government has announced the removal of a 25% sales tax on books to address a “reading crisis,” with Culture Minister Jacob Engel-Schmidt expressing hopes that this will increase book sales and improve literacy among Danish youth.
- Financial Implications: This measure is expected to cost the government approximately 330 million kroner ($50 million) annually, as Denmark currently has one of the highest sales taxes on books in the world, significantly impacting accessibility.
- Concerns Over Reading Skills: Recent OECD data shows that a quarter of Danish 15-year-olds struggle with reading comprehension, prompting the government to take action. While the tax removal is not seen as a complete solution, it aims to make books more accessible and combat declining reading levels among teenagers.
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
