Several grocery chains in Sweden lowered prices before April 1, 2026, in anticipation of the VAT cut, according to Ulf Mazur, CEO of Matpriskollen. Matpriskollen reported that food prices decreased by 4.1% in March 2026 compared to February. However, SCB preliminary figures show food and non-alcoholic beverage prices fell only 1.0% in March compared to February, and were flat year-on-year. The difference between the two data sets is due to different measurement periods: Matpriskollen measures on the last day of the month, while SCB measures around the 15th, according to multiple reports.
Specific price reductions varied by chain and product category. Matpriskollen reported that cheese prices fell by 6.5% in March 2026, while sausage, ice cream, and snacks became 4% cheaper. Lidl, Willys, and Coop lowered their prices by 5.36%, according to Matpriskollen. Coop has lowered prices the most among chains this year, partly due to own price adjustments on 3,000-4,000 items earlier in the year for competitive reasons, according to multiple reports. Some chains display prices with öre to make the reduction visible, while others round to the nearest 5 or 10 öre, making the cut less noticeable, according to Ulf Mazur. Hemköp changed its prices only on April 1, so statistics show no price cut in March, according to multiple reports.
We have worked intensively during the Easter period to change all price tags. It is a huge job, but we are happy to be able to offer lower prices to our customers.
The VAT reduction applies to food in stores and takeaway food, but not to restaurant meals, creating confusion. Restaurants may have different prices depending on where customers eat (takeaway vs. dine-in) due to the VAT rules, according to Ulrica Sjöberg at Sundbyholms Gästhamn. ICA Maxi Gnista prepared to change 15,000 price tags ahead of the VAT cut, working intensively during the Easter period, according to Amanda Järpemo, vice CEO of ICA Maxi Gnista, as reported by Uppsala Nya Tidning. Suppliers are being urged by grocery chains to freeze prices so that the VAT cut is clearly visible to consumers, according to an anonymous producer. The VAT reduction is effective as of April 1, 2026, according to research. The measure aims to help households manage inflation and rising living costs, according to research. Businesses selling or supplying food in Sweden are directly affected, according to research. Takeaway food qualifies for the reduced 6% VAT rate, while on-premises dining remains at 12%, according to research. Foreign suppliers selling food into Sweden must ensure the correct temporary rate is applied, according to research. Businesses must update pricing, invoicing, and VAT reporting systems to comply with the new rate, according to research. The VAT cut is projected to cost the Swedish state significantly, according to research. Bottled water is included in the reduced rate; alcoholic beverages are excluded, according to research.
A price comparison of 15 common items in Ängelholm showed that ICA Supermarket was most expensive at 715.75 SEK in mid-March, according to multiple reports. After the VAT cut, the same basket of 15 items became cheaper in all stores, with reductions ranging from 1.2% to 12.5%, according to multiple reports.
These price cuts are part of our ongoing commitment to help customers manage their household budgets.
In the UK, Morrisons is lowering prices on a wide range of products, including Savers items, as part of its commitment to value, according to Morrisons. Morrisons' price cuts include Fyffes Loose Bananas (90p), Baby Potatoes 1kg (£1.09), and other items, according to Morrisons. Morrisons is also introducing spring offers on thousands of branded items, such as Birds Eye Fish Fingers (20pk £3.00), according to Morrisons. In January 2026, Morrisons cut prices on 2,500 products, according to Morrisons. Alex Paver, Pricing and Customer Director at Morrisons, said: "These price cuts are part of our ongoing commitment to help customers manage their household budgets."
The VAT reduction will increase cross-border shopping from Denmark to Sweden, threatening Danish tax revenue and retail employment, according to Danish retailers. Denmark maintains a flat 25% VAT on all goods, including food, according to research.
Several unknowns remain. It is unclear whether the VAT reduction will be extended beyond December 31, 2027. The exact cost to the Swedish state and how it will be funded have not been confirmed. The extent to which the VAT reduction will actually be passed on to consumers across all product categories is uncertain. How Danish retailers and tax authorities will respond to the increased cross-border shopping incentive is not yet known. The exact list of food items that qualify for the reduced 6% VAT rate and any ambiguities in the rules have not been fully clarified.