Denmark to introduce zero VAT on books and scrap coffee and chocolate taxes
- Denmark has proposed abolishing long-standing coffee and chocolate consumption taxes from 1 July 2026.
- The same bill would introduce a 0% VAT rate on books, e-books and audiobooks, extending the current zero rate for newspapers.
- The reforms reflect growing EU VAT rate flexibility, allowing member states to reduce VAT on cultural goods.
Denmark targets outdated consumption taxes
Denmark’s parliament is considering draft legislation (Bill L 125) that would repeal two of the country’s most unusual consumption taxes: the coffee tax and the long-criticised chocolate tax.
See more in our Danish VAT guide.
If approved, both taxes will be abolished from 1 July 2026, with a refund mechanism allowing businesses to reclaim tax already paid on stock held at the transition date.
The chocolate tax has historically applied broadly to sugary products including chocolate, chewing gum, liquorice and marzipan. Coffee products are taxed depending on processing stage.
These taxes have long been criticised by businesses as administratively complex and distortive, particularly for companies importing confectionery products into Denmark.
Their abolition signals a shift towards simplifying consumption taxes and reducing niche excise regimes that create compliance burdens without generating substantial revenue.
Zero VAT on books under EU VAT freedoms
The same legislation proposes introducing a zero VAT rate for books, including digitally delivered books and audiobooks.
Denmark currently applies its standard 25% VAT rate to books. Under the proposal, books would join newspapers in benefiting from a 0% VAT rate.
The reform forms part of Denmark’s wider strategy to address declining reading rates and improve access to literature.
It is also made possible by recent changes to EU VAT rules which allow member states to apply reduced or zero rates to cultural goods, including printed and digital publications. Several EU countries have already used these new flexibilities to reduce VAT on books and digital media.
At the time of writing, the legislation has been tabled in parliament but has not yet passed its first reading, so details could still change during the legislative process.
Denmark already changed VAT rules in 2026
Separately, Denmark introduced significant VAT changes earlier this year affecting the fitness and wellness sector.
From 1 January 2026, many commercial leisure and training services that were previously VAT-exempt became subject to 25% Danish VAT. The change affects activities such as:
- Personal training
- Group fitness classes including yoga, spinning and dance
- Sports coaching and hobby-based instruction
- Commercial mental sports such as chess or bridge where turnover exceeds DKK 50,000
The reform followed rulings from the European Court of Justice and required Denmark to align its VAT treatment of commercial leisure services with EU VAT directives.
For businesses operating gyms, training services or coaching activities, the change means new VAT obligations, pricing adjustments and updated reporting requirements with the Danish Tax Agency (Skattestyrelsen).
