The government’s temporary VAT reduction, effective 1 April 2026, aims to ease financial pressure amid high inflation and unemployment, excluding tap water and most alcoholic drinks.
Sweden has announced a temporary reduction in the value-added tax (VAT) on food and bottled water, lowering the rate from 12% to 6% from 1 April 2026 to 31 December 2027, as published in the Official Gazette on 3 March 2026.
The move follows parliament’s approval of the government’s proposal, aimed at easing household finances amid high inflation and unemployment. The VAT cut does not apply to tap water or most alcoholic beverages.
The legislation sets out the legal amendments to the VAT Act necessary to implement the temporary reduction in line with European Union directives. Lawmakers emphasised monitoring price transparency to ensure the relief benefits consumers rather than boosting corporate profits.
Earlier, Sweden’s parliament (Riksdag) approved the government’s proposal to temporarily reduce the value-added tax (VAT) rate on food from 12% to 6%.
