Denmark proposes scraping VAT on books 2027 under EU VAT Freedoms to tackle declining literacy
Denmark is debating cutting VAT on books to 0% from 25% as part of a broader national strategy to address declining reading rates.
The reform aligns with the European Union’s 2025 VAT rate freedoms reforms, which grants member states expanded autonomy to apply reduced or zero VAT rates to cultural goods, including printed and digital publications.
The Danish government will propose the change in its upcoming 2026 budget bill, estimating a revenue loss of 330 million kroner (approx €44 million) per year. The decision reflects a growing concern that high book prices, driven by standard VAT rates, are contributing to a national “reading crisis.”
See more in our Danish VAT guide.
Denmark highest book VAT rates
Until now, Denmark applied its full VAT rate to books, unlike other Nordic countries. Sweden taxes books at 6%, Finland at 14%, and Norway, although not in the EU, exempts books from VAT entirely.
At 25%, the Danish book VAT rate is the highest in the world – Hungary with a standard rate of 27% only levies its 5% on books.
The reform is part of a multi-pronged strategy to promote reading, especially among young people. The government has already increased funding for initiatives connecting public libraries and schools to improve children’s access to literature.
Under the EU’s new VAT rules, member states are permitted to designate up to two reduced rates and one super-reduced or zero rate on a broader list of goods and services than was previously allowed. Cultural goods, including books, are explicitly eligible under this expanded framework.
The Danish government plans to monitor the impact of the VAT removal closely. If it results in higher publisher profits without a corresponding drop in consumer prices, the policy may be revisited to ensure it achieves its intended goal of increasing reading access and affordability.
