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Public Sweden Author: Nikolina Basić
Sweden’s Ministry of Finance has proposed cutting VAT on food and bottled water from 12% to 6% between April 1, 2026, and December 31, 2027, to ease household costs and support purchasing power. The measure, excluding alcohol and certain beverages, is aimed at countering inflation and awaits parliamentary approval.
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Content accuracy validation date: 22.09.2025
Content accuracy validation time: 09:16h

The Swedish Ministry of Finance has announced a proposal to temporarily reduce the value-added tax (VAT) on food and bottled water from 12% to 6%, aiming to ease household expenses and support consumer purchasing power.

According to the memorandum issued by the ministry, the reduced VAT rate would apply from April 1, 2026, through December 31, 2027. The measure is part of a broader effort to address inflationary pressures and promote affordability in essential goods.

The proposed reduction will not apply to:

·         Spirits

·         Wine

·         Strong beer

·         Certain types of drinking water

These exclusions are intended to maintain current tax levels on alcohol and specific beverage categories.

The lower VAT rate will be valid for taxable transactions occurring after the amendments take effect on April 1, 2026.

The proposal is now under review and will require parliamentary approval before implementation.

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