Temporarily reduced VAT on food
On 1 April 2026, Sweden will introduce a temporary reduction in the VAT on food. The change means that the VAT rate will be halved, from 12 per cent to 6 per cent.
The government has decided to temporarily reduce the VAT on food. The aim is to strengthen household finances by lowering the cost of groceries.
The reduced VAT affects businesses that sell food, such as supermarkets, kiosks, petrol stations, cafés and restaurants. Companies that import or sell food within the EU are also covered by the change.
Different VAT rates for restaurants
For businesses that both sell food and provide dining services – such as restaurants and cafés – different VAT rates may apply depending on how the item is sold. Food sold for takeaway is classified as a food product and is subject to 6 per cent VAT, while food consumed on the premises is considered a service and is taxed at 12 per cent.
Preparations
Because the VAT reduction takes effect for everyone at the same time, and from one day to the next, businesses selling food need to prepare for the change. Here are a few concrete steps to take before 1 April:
- Update your till system with the new VAT rate for food.
- Ensure that your till system can handle several different VAT rates simultaneously.
- Manage the transition correctly in your accounting.
The temporary reduction in food VAT applies until 31 December 2027.
Questions and answers about the reduced food VAT
What counts as food?
The term covers both processed and unprocessed products intended for human consumption. It also includes dietary supplements and substances added to food during production and preparation.
Will alcohol receive a reduced VAT rate?
No. Drinks such as spirits, wine and strong beer are not considered food. They will continue to be taxed at 25 per cent.
How should I handle sales around 1 April?
In most cases, the VAT rate to be applied depends on when the goods are delivered – not when they are paid for. This means, for example, that:
- A food product delivered before 1 April 2026 must be taxed at 12 per cent, even if the invoice is sent later.
- A delivery of food made on or after 1 April 2026 must be taxed at 6 per cent, even if the invoice was issued in advance.