Denmark has reached a political agreement to analyse VAT-based measures to reduce food prices from 2028, including either lowering VAT on all food or removing VAT on fruit and vegetables, with DKK 6 billion per year earmarked for one option. No changes apply yet, as the government will complete its analysis and consultations by the second half of 2026 before deciding whether—and how—to implement any VAT reduction.
Denmark: Government to Study Possible VAT Cut on Food from 2028
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Denmark
Author: Ivana Picajkić
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Fiscal subject related
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Content accuracy validation date:
18.02.2026
Content accuracy validation time:
08:09h
On January 28, 2026, the government of Denmark announced a political agreement to explore ways to reduce food prices starting in 2028. The plan focuses on changes to VAT on food and is supported by several political parties.
From 2028 onwards, the government would set aside DKK 6 billion per year for one of the following options:
- Reducing VAT on all food products, or
- Removing VAT entirely on fruit and vegetables.
Before making a decision, the government will analyse which option:
- Fits within the available budget, and
- Creates the least administrative and economic burden for businesses and authorities.
Food prices in Denmark have risen faster than overall consumer prices in recent years. The government says this has put pressure on household budgets, which is why it is looking at VAT-based measures to help lower food costs.
Process and timeline:
- The analysis will be led by the Ministry of Finance, together with other relevant ministries.
- Experts and stakeholders will also be consulted.
- The results are expected in the second half of 2026.
No VAT changes are introduced now.
The agreement only sets the framework for analysis.
Any VAT reduction would not take effect before 2028, and only if further political decisions are made.
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