VAT on books will be abolished in Denmark under a government proposal announced on 20 August 2025 by Culture Minister Jakob Engel‑Schmidt (kulturminister). The measure, to be written into the upcoming national budget Finansloven, is expected to cost DKK 330 million (€44 million) per year and aims to make literature more accessible amid what officials call a national reading crisis.
Reading crisis and price pass‑through
The government argues that removing VAT on books is a necessary response to declining reading among children and adults as streaming and social media compete for attention. If publishers and retailers pass the entire tax cut on to consumers, shelf prices would fall by roughly one‑fifth (removing a 25% VAT from a gross price typically yields about a 20% drop).
The minister said authorities will monitor price developments and reassess the policy if lower tax simply increases publishers’ margins instead of reducing prices.
Nordic comparison: Sweden at 6%, Finland at 14%, Norway at 0%
Denmark currently levies the world’s highest book VAT at 25%. Across the Nordics, rates are lower: Sweden 6%, Finland 14%, and Norway 0% on all book formats, including e‑books.
Abolishing the tax would align Denmark more closely with its neighbours and, according to industry groups, could stimulate sales without undermining the diversity of titles in a relatively small language market.
EU rules now allow a zero rate for VAT on books
Since 2022, changes to EU VAT law have allowed member states to apply zero rates to certain “basic need” cultural items, including books, newspapers and periodicals.
Copenhagen’s plan would use this flexibility within the EU framework while keeping Denmark’s standard VAT at 25% for most other goods and services.
Libraries and schools: complementary funding
In parallel, the government has earmarked DKK 24.4 million (€3.3 million) to strengthen cooperation between public libraries and schools, with the goal of introducing more children and families to quality literature.
Officials argue that supply‑side price cuts and demand‑side literacy initiatives must work together to reach new readers, not only those who already buy books.
What happens next in the finance bill process
The proposal will be tabled with the draft Finansloven by the end of August, beginning the Folketing’s budget negotiations in the autumn. The final budget is normally adopted in December, after which implementing measures would take effect. Booksellers, publishers and authors—longtime advocates of a tax cut—are expected to lobby for swift adoption and full price pass‑through to consumers.
Potential impact for the market
If enacted and fully reflected in retail prices, the zero rate could lower average book prices, expand access to children’s and educational titles, and slightly improve margins for small independent bookshops.
Past experience in Sweden suggests that lower VAT can increase unit sales, even if the first wave of growth comes largely from existing readers. Over time, officials hope the combined policy of zero VAT and literacy investment will broaden the reader base.
Denmark’s move would end its outlier status on book VAT, bring policy into line with Nordic and EU trends, and test whether fiscal levers can meaningfully shift reading habits. The outcome will be closely watched across the region, where cultural and education policies increasingly intersect with tax design.
