Reminder: Denmark Plans to Remove Coffee and Chocolate Taxes and Introduce 0% VAT on Books

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.

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By abolishing these taxes, Denmark aims to simplify its tax system and remove outdated consumption taxes that create administrative burdens but generate relatively little revenue.