Sweden Plans Temporary VAT Cut on Food from 12% to 6%

• Sweden plans to temporarily reduce VAT on food from 12% to 6% between April 2026 and December 2027 to help households cope with high food prices during economic downturn
• The VAT reduction will apply to most food products as defined by EU Food Regulation but excludes alcoholic beverages and tap water while including bottled water
• Businesses including retailers suppliers food producers and restaurants will need to adapt their accounting and pricing systems with restaurants required to distinguish between dine in services and takeaway food
• The government expects the VAT cut to result in immediate price reductions benefiting consumers across all income levels and emphasizes ensuring benefits reach consumers rather than being absorbed by supply chain intermediaries
• The temporary measure is projected to cost the Swedish treasury approximately SEK 37.2 billion over the 21 month period but is considered justified for providing household economic relief

Source: marosavat.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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