Editorial Team – [2026] 184 taxmann.com 294 (Article)
Global IDT Insights provides a weekly snippet of tax news specifically related to Indirect Taxes from around the globe.
1. Sweden Approves a Temporary Reduced VAT Rate on Food
Sweden has approved a temporary reduction in the value-added tax (VAT) rate on food. The decision follows approval of the government’s proposal to reduce the VAT rate applicable to food supplies from 12 per cent to 6 per cent. The measure is intended to provide financial support to households.
The legal amendments introduce a temporarily reduced VAT rate specifically applicable to food. The measure forms part of a policy initiative aimed at supporting household finances by lowering the VAT burden on food consumption during the specified period.
Key aspects of this measure include:
(a) Temporary Reduction of VAT Rate on Food from 12 Per Cent to 6 Per Cent – The approved amendments reduce the value-added tax (VAT) rate applicable to food from 12 per cent to 6 per cent. This reduction applies only for a limited period and is intended to provide temporary relief by lowering the VAT charged on food supplies.
(b) Parliamentary Approval of the Government’s Proposal for VAT Reduction – The government proposed amendments to temporarily reduce the VAT rate on food as part of measures to support households. The proposal was reviewed by the parliamentary committee, which recommended approval of the bill. Following this recommendation, the House approved the committee’s proposal. The legislative decision formally authorises the temporary reduction in the VAT rate applicable to food.
(c) Effective Period of the Temporary VAT Reduction – The legal amendments specify that the temporary VAT rate reduction will apply from 01-04-2026. The measure will remain in force until 31-12-2027, after which the temporary provisions will cease to apply unless further legislative action is taken. The specified period defines the duration during which the reduced VAT rate of 6 per cent will apply to food supplies.
Source: Official Announcement
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