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Denmark’s Food VAT Cut Could Cost Businesses 725 Million DKK Annually

  • Denmark is considering cutting VAT on food, including removing food from the general VAT rate on fruit and vegetables, but no change will take effect this year.
  • A parliamentary response estimates the added business administration cost at about DKK 725 million annually, to be borne by shops and other businesses.
  • Danish industry groups say the real compliance cost would likely be significantly higher because more complex food VAT rules would affect many businesses beyond retailers and restaurants.
  • The broader food VAT reduction is estimated to cost the Danish state DKK 17.4 billion per year.
  • The government plans to present several possible implementation models in the second half of 2026.

Source: cphpost.dk

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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