Slovakia raises VAT on sugary and salty foods to 23% in 2026 – part of a European push on “unhealthy” Consumption
The Slovak Republic has taken a decisive fiscal and public health step by legislating a higher VAT rate on certain food and drink categories widely considered unhealthy. Published in the Official Gazette on 24 September 2025, Law 261/2025 implements a package of public finance consolidation measures that will apply from 1 January 2026.
Switch from 19% reduced to 23% standard Rate
Until now, Slovakia had applied a reduced VAT rate of 19% on a broad list of foodstuffs. From 2026, products with high sugar or sodium content will lose this preferential treatment. Instead, they will be taxed at the standard rate of 23%. The shift affects:
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Confectionery and sweets
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Sweetened soft drinks
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Salty snacks
By specifically excluding these products from the list of items eligible for the reduced rate, the government both raises revenue and sends a policy signal about healthier consumption patterns.
Not just VAT virtual signalling – budgetary needs too
The law is part of a broader fiscal consolidation plan aimed at strengthening public finances. While the health benefits of discouraging excessive sugar and salt intake are clear, the revenue motivation is equally important as governments across Europe grapple with budgetary pressures.
A growing European trend to adopt VAT for health objectives
Slovakia is far from alone. Across the EU and beyond, governments are reconsidering whether VAT policy should actively encourage healthier diets and lifestyles. Recent examples include:
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Portugal has debated moving sugary drinks permanently to its highest VAT bracket, building on earlier excise measures.
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France has long applied higher VAT and excise duties on sweetened beverages, recently tightening rules in tandem with its “soda tax.”
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Hungary operates a targeted “public health product tax” on sugary drinks, salty snacks, and energy drinks, which runs in parallel to VAT.
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Nordic countries have repeatedly reviewed VAT and excise combinations to tackle sugar intake, with Denmark reintroducing discussions about differentiated food taxation.
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United Kingdom (though outside the EU) has pioneered a tiered “Soft Drinks Industry Levy” which, while not VAT, has acted as a strong fiscal nudge.
The common thread: whether through VAT reclassification or targeted excises, fiscal systems are increasingly being used as levers in health policy.
