Denmark: Proposal to Remove 25% VAT on Fruit and Vegetables

Denmark’s Conservative Party has proposed removing the 25% VAT on fruit and vegetables to ease household costs and promote healthier diets, though implementation would be delayed due to the complexity of adjusting tax and IT systems.

The Conservative Party in Denmark has called for the removal of VAT on fruit and vegetables, arguing that rising grocery costs are putting too much pressure on households. Currently, Denmark applies a flat 25 percent VAT rate on nearly all goods, including food, one of the highest food VAT rates in the European Union. The government has previously warned that introducing differentiated VAT rates would be technically complex, since existing tax and IT systems are not designed for multiple rates and would require upgrades expected to take three years or more.

Supporters of the proposal, including health and environmental organizations, argue that cheaper fruit and vegetables would promote healthier diets, benefit local producers, and reduce cost pressures on families. The current government has not committed to any VAT changes for food.

If adopted, the reform could ease cost-of-living pressures and encourage healthier consumption, but implementation would likely be several years away given the need for system overhauls.