Apr
Sweden to reduce its VAT rate for food from 1 April 2026
Who this will interest: Businesses trading in Sweden
Key point(s): The VAT rate on food will be lowered
Essentia’s take: Businesses selling food in Sweden may be able to reduce the VAT rate charged to customers on some of their products.
Action points: Businesses selling food in Sweden should review their products and determine if they qualify for the reduced rate.
In detail
Sweden has announced it will reduce its VAT rate to 6% on sales of food and certain drinks from 1 April 2026. The reduced rate will also apply to takeaway food but will not apply to food and drinks sold for consumption at a restaurant or café. For the later a 12% VAT rate will continue to apply.
When selling food or drinks businesses will need to determine whether they are selling food only or if there is an element of restaurant services which would make the supply ineligible for the 6% rate. Additionally, not all food items qualify for the reduced rate.
If you sell food or drinks in Sweden, you should assess whether you qualify for the new reduced rate. Please reach out to Essentia for support on this matter or if you would like to know more about this update.