International VAT Rate Round Up: September 2026

Indirect tax policy continues to play a central role in governments’ economic and fiscal strategies, with September 2026 bringing a mix of VAT rate reductions, sector-specific relief measures and proposed reforms across multiple jurisdictions. From Norway’s consideration of a simplified VAT system and Denmark’s plans to reduce VAT on food, to temporary consumer-focused reductions in Latvia and Poland, businesses face an increasingly dynamic VAT landscape that requires close monitoring.

Stay ahead of VAT rate changes, policy proposals and emerging compliance considerations with our latest updates from Denmark, Latvia, Norway, Poland, Slovenia and Uruguay

VAT rate changes by country

Denmark– Planned VAT reduction on food products from 2028

The Danish government is planning a VAT reduction on food products, announced in several press releases.

• The measures include:
• 50% reduction on food generally
• Zero VAT on fruit and vegetables

The current rate for food products is 25% (the standard for Denmark).

Though no legislative changes yet, the expected effective date is 2028.

Denmark– VAT exemption on books, ebooks and audiobooks from 1 January 2027

The Danish Parliament is re-proposing a number of initiatives that were included in Bill L 125 that lapsed at the election.

The Ministry of Taxation and Growth announced in a press release published on 19 June 2026, among other things, a plan to abolish VAT on books, including those supplied electronically and in audio format.

The measures are expected to take effect from 2027.

Latvia – Temporary VAT reduction on select basic food products

Effective: 1 July 2026

Latvia introduced a temporary reduced VAT rate of 12% (down from the standard 21%) on selected basic food products. The measure will remain in force until 30 June 2027 and applies to four product categories:

• Bread
• Milk
• Poultry meat
• Eggs

The Latvian government introduced the reduction to help mitigate the impact of food price increases on consumers and strengthen household purchasing power.

Businesses supplying the affected products in Latvia should ensure that their VAT treatment reflects the new 12% reduced rate from 1 July 2026 through 30 June 2027

Norway– Consideration of major VAT simplification reforms

On 24 June 2026, the Norwegian Tax Commission submitted its comprehensive tax reform report to the Ministry of Finance, including recommendations aimed at simplifying Norway’s VAT system.

Based on the Commission’s recommendations in Section 9.6, the current 12% reduced VAT rate is to be abolished and increased to 15%, effectively merging Norway’s two reduced VAT rates into a single reduced rate.

If implemented, the change would affect:

• Passenger transport tickets
• Hotel stays
• Public broadcasting
• Tickets to cinemas, sporting events, amusement parks and activity centres

These sectors would see VAT increase from 12% to 15%.

The Commission also discussed a more extensive reform that would see Norway would move towards a single VAT rate of 25%, eliminating reduced rates altogether. Under this approach, all goods and services currently benefitting from reduced VAT treatment would become subject to the standard rate.

According to the Commission, a broader VAT base and fewer VAT rates would:

• Improve neutrality
• Reduce distortions between sectors created by preferential rates
• Simplify VAT administration and compliance

The recommendations are not legislative proposals and would require government consideration and subsequent legislative action before any changes could be implemented. Any VAT changes would require subsequent government and parliamentary approval before taking effect.

Poland– Temporary VAT cut on motor fuels reintroduced

The Polish Government has temporarily reintroduced a reduced VAT rate on motor fuels from 23% to 8%. The period of validity of the lower VAT rate was approximately 2 weeks, from 17 August 2026 to 31 August 2026.

The measure forms part of the Government’s CPN programme aimed at reducing fuel prices for consumers.

The 8% VAT rate applies to:

• Motor gasoline and qualifying gasoline blends containing biocomponents
• Diesel oils and products made qualifying diesel blends containing biocomponents
• Biocomponents used as standalone fuels that meet applicable quality requirements
• Liquefied natural gas and other qualifying gaseous hydrocarbons used as motor fuels

The temporary reduction is intended to provide short-term relief from fuel costs, with the standard 23% VAT rate scheduled to resume from 1 September 2026 unless further measures are announced.

Slovenia– Proposed VAT reductions on food and energy await referendum approval

On 11 May 2026, the Slovenian Parliament adopted the Act on Intervention Measures for the Development of Slovenia (ZIURS), introducing a number of VAT relief measures aimed at supporting households and reducing the cost of essential goods. However, the measures have not yet taken effect and remain subject to a national referendum.

Under the Act, the VAT rate on certain food products adapted to specific dietary needs would be reduced from 9.5% to 5%. The measure is intended to support individuals with food intolerances and other health-related dietary requirements.

Eligible products include:

• Flour
• Bread
• Pasta
• Beef, pork, and chicken
• Milk and yoghurt
• Semi-hard, semi-fat cheeses
• Butter
• Eggs
• Fresh fruit and vegetables
• Sunflower oil
• White sugar

The Act also proposes a temporary nine-month reduction of VAT from 22% to 9.5% on selected energy products, including:

• Electricity
• Natural gas
• District heating
• Firewood

The legislation was originally expected to enter into force on 1 July 2026, following a parliamentary decision on 28 May 2026 that no referendum would be required. However, that decision was overturned on 24 July 2026, and a referendum will now be held on the measures.

As a result, the Act has not yet entered into force. The measures must first be voted in favour at the referendum and subsequently be published in the Official Gazette before they can take effect.

Uruguay- Reduced VAT rate for tourism sector extended until 30 September 2026

On 12 May 2026, the Uruguay Government published in Official Gazette (Diario Oficial) Decree No. 83/026, extending the reduced VAT regime for operations related to tourism.

The measure originally introduced in 2021 was recently extended by Decree No. 93/025, which had been due to expire on 30 April 2026.

Under the regime, qualifying tourism services continue to benefit from a 9 percentage-point VAT reduction, reducing the effective VAT burden from the standard 22% to 13%, having that payment is being made through electronic means, such as credit cards, debit cards or digital payment methods.

The relief applies to a range of tourism-related services, including:

• Restaurants, bars and cafés
• Catering and event-related services
• Entertainment and event services
• Car rental services without a driver
• Certain real estate mediation services linked to tourism

The extension aims to continue supporting the tourism sector while maintaining economic activity and regional competitiveness.