Maria Ström
Associate
Stockholm
Newsletter
Lower Swedish VAT on food
by Maria Ström and Ebba Perman Borg
Published:
The proposal to temporarily reduce Swedish VAT on food from 12% to 6% was covered in our tax newsletter of 22 September 2025. Although the measure has been welcomed by many in light of the sharp increases in food prices in recent years, critics argue that it represents a costly and inefficient way of supporting household finances.
However, the proposal is now being implemented. As of 1 April 2026, the temporary VAT reduction will enter into force and is proposed to remain in place until 31 December 2027.
The reduced VAT rate applies throughout the supply chain, from manufacturers and wholesalers to retailers, for food products that are:
- sold in Sweden,
- acquired from other EU Member States, or
- imported from countries outside the EU.
It is important that companies sourcing food products from abroad should ensure that their systems and processes are capable of handling these transactions in accordance with the new rules.
