- Sweden’s government has announced a significant support package called the “Larger Wallet Package” for 2026-2027, which includes halving the VAT on food from 12% to 6% to help households with inflation. This measure, effective from April 1, 2026, to December 31, 2027, is expected to save a typical family SEK 6,500 annually. The package also includes income tax relief, reduced taxation on sickness and disability payments, and electricity support. The VAT cut is projected to cost SEK 37 billion over two years. The initiative comes ahead of the 2026 elections, aiming to restore household security amid economic challenges. Businesses must ensure VAT savings are passed to consumers, with monitoring by the Swedish Consumer Agency.
Source: vatabout.com
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.
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