- Denmark plans to reduce VAT on basic foodstuffs from 2028 due to rising food prices, but the scope of the cut is undecided.
- The government is considering either a VAT reduction on all food or only on fruit and vegetables.
- This would be a significant change from Denmark’s current single 25% VAT rate on almost all goods and services.
- Similar VAT cuts are being introduced in Sweden (April 2026) and Austria (July 2026).
- Any VAT change in Denmark will take time, involve legislative and system adjustments, and may increase compliance complexity for businesses; non-VAT measures are also being considered to address food price inflation.
Source: fiscal-requirements.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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