Denmark is proposing to abolish the coffee and chocolate taxes starting July 1, 2026, under draft Bill L 125, in order to simplify the tax system and reduce administrative burdens for businesses. The proposal also introduces a 0% VAT rate on printed books, e-books, and audiobooks, aligning their tax treatment with newspapers and supporting access to cultural products.
Reminder: Denmark Plans to Remove Coffee and Chocolate Taxes and Introduce 0% VAT on Books
Public
Denmark
Author: Ivana Picajkić
Category:
Fiscal subject related
General information
Views:
55
Content accuracy validation date:
16.03.2026
Content accuracy validation time:
08:24h
Denmark is planning to remove two long-standing consumption taxes: the coffee tax and the chocolate tax. According to draft legislation (Bill L 125), both taxes would be abolished starting July 1, 2026.
The proposal also introduces a 0% VAT rate on books, including printed books, e-books, and audiobooks, extending the same VAT treatment that already applies to newspapers. This change reflects the EU’s increasing flexibility in allowing reduced VAT rates for cultural products.
If the proposal is approved, businesses will no longer have to pay these taxes from July 2026. Companies holding taxed products in stock at that time will be able to claim a refund for the tax already paid on those goods.
The chocolate tax has traditionally applied to a wide range of sugary products such as chocolate, chewing gum, liquorice, and marzipan. The coffee tax depends on the level of processing of coffee products.
Businesses have long criticised these taxes because they are complex to administer and create additional costs, especially for companies importing confectionery products into Denmark.
By abolishing these taxes, Denmark aims to simplify its tax system and remove outdated consumption taxes that create administrative burdens but generate relatively little revenue.
Other news from Denmark
New document was uploaded: Technical country overview - Denmark
Denmark
Author: Ištvan Božoki
This document is a technical overview for a fiscalization system, specifically for Denmark’s cash register and SAF-T reporting framework. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Denmark to Replace OIOUBL with NemHandel BIS 4
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
Denmark will gradually replace the OIOUBL 2.1 e-invoicing format with NemHandel BIS 4, a new Peppol-based standard aligned with EN-16931 and future EU ViDA requirements, with migration planned between 2028 and mid-2029. On February 24, 2026, the Danish Business Authority announced that the national e-invoicing format OIOUBL 2.1 will be gradually replaced by NemHandel BIS 4, a new format based on t... Read more
Denmark Launches SAF-T 2.0
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
Denmark has introduced SAF-T 2.0, an updated Standard Audit File for Tax that standardizes transaction-level accounting data and improves transparency, interoperability, and automated data exchange between businesses, auditors, and public authorities. From 1 January 2027, registered digital accounting systems must support SAF-T 2.0, supporting future automated reporting and data-driven compliance... Read more
Denmark: Government to Study Possible VAT Cut on Food from 2028
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
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 a... Read more
Denmark Considers Cutting VAT on Food but Faces Structural Challenges
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
Denmark plans to reduce VAT on basic foodstuffs from 2028 and is currently debating whether the cut should apply to all food or be limited to fruit and vegetables, marking a major departure from its long-standing single 25% VAT rate model. While both options are permitted under EU VAT rules, each would increase compliance complexity, and the government has indicated that any change will require a... Read more
Denmark: OIOUBL 2.1 – Schematron version 1.17.0. 1.17.0. RC
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
Denmark has released OIOUBL 2.1 Schematron v1.17.0 (Release Candidate), introducing stricter tax code consistency checks, enhanced Peppol VAT code alignment, and mandatory currency validation on amount fields. The final version is expected in mid-February 2026, with mandatory implementation by 15 May 2026, giving businesses additional time to test and adapt their invoicing systems. The Danish Busi... Read more