Danish retail organization De Samvirkende Købmænd has expressed serious concerns about Sweden's decision to lower food VAT, warning it could cost Denmark jobs. According to reports, Sweden is reducing its food VAT from 12 percent to 6 percent effective April 1, 2026.
Claus Bøgelund Nielsen, vice director of De Samvirkende Købmænd, stated that Danish retailers could be disadvantaged at a time when Danish customers are already crossing the Öresund Bridge to shop in Sweden due to favorable exchange rates. "Danes are price-sensitive and go where they can save money," Bøgelund Nielsen said.
Danes are price-sensitive and go where they can save money
The organization has criticized both the Swedish VAT reduction and the Öresund Bridge's marketing campaign that encourages shopping in Sweden with promises of "much more for your money." Bøgelund Nielsen expressed particular frustration that the Danish state maintains a 25 percent food VAT while co-owning the Öresund Bridge, which promotes cross-border shopping.
Danish retailers fear the combined effect of exchange rates and lower Swedish VAT will further incentivize Danish consumers to shop in Sweden, potentially threatening jobs in Denmark's retail sector. The organization suggests Denmark should consider following Sweden's lead and reducing its own VAT rates to remain competitive.