Starting April 1, 2026, Sweden has implemented a reduced VAT rate on food, including takeaway meals from restaurants, though the reduction does not apply to food consumed on premises. The restaurant Spice 'n Rice on Allégatan reportedly plans to lower prices on its takeaway food in response to the tax change, though the specific form of the price reduction remains unclear.
According to reports from Borås Tidning and Skånska Dagbladet, the VAT reduction applies to both grocery store food and restaurant takeaway meals. However, the restaurant industry has criticized the reform because it creates different tax rates depending on where food is consumed. The industry organization Visita estimates the new system could lead to tax errors equivalent to one billion Swedish kronor.
It's the wrong way to go
"It's the wrong way to go," said Thomas Jakobsson, chief economist at Visita, expressing concerns about the complexity of different tax rates for consumers and restaurant owners. While some grocery stores have already begun lowering prices ahead of the April 1 implementation, it's not certain that all restaurants will pass on the VAT reduction to customers through lower takeaway prices.