Sweden MOF Issues Memorandum on Proposal to Temporarily Reduce VAT on Food, Bottled Water

The Swedish Ministry of Finance Sept. 5 issued Memorandum No. Fi2025/01687, on proposed amendments to the VAT Act to temporarily reduce the VAT rate on food and bottled water. The memorandum includes measures to: 1) reduce the VAT rate, to 6 percent from 12 percent, on supplies, intra-Community acquisitions, and imports of foodstuffs and of bottled water intended for sale, from April 1, 2026, through Dec. 31, 2027; 2) exclude from the temporary rate reduction spirits, wine, strong beer, and specified drinking water; and 3) apply to taxable transactions for which the chargeable event occurs after the entry into force ...