Global Daily Tax News, Swedish Mulling Multiple VAT Rates For Different Foodstuffs, (Jul 9, 2026)

The Swedish Government has commissioned a review that will consider whether to levy multiple rates of value-added tax on different foodstuffs.

The review will consider the application of up to three different rates of value-added tax on specific categories of food, to lower the cost of basic essentials.

A report, including draft legislation, will be tabled before the Ministry of Finance by no later than December 22, 2026.

Sweden levies three rates of VAT: 25 percent, 12 percent, and six percent. While foodstuffs are typically liable to a 12 percent rate of VAT (since 1996), currently a six percent exceptionally applies, for the period from April 1, 2026, to December 31, 2027.

The Swedish Government said, "After the temporary reduction in VAT on food ceases to apply, there may be reasons to continue supporting households. It is therefore also desirable to develop a proposal for a differentiated VAT on food, in order to keep down the costs of households' purchases of particularly essential food."