Sweden considers VAT cut for restaurant meals

12 September 2011 by
Sweden considers VAT cut for restaurant meals

Sweden's government said it plans to cut VAT on restaurant meals in its 2012 budget, a measure worth 5.4b krona (£500m).

The proposed cut in VAT to 12% from 25% for restaurants and catering services has been a long-stated goal of the minority government and is part of a package of measures to create jobs for young people worth 7.5b krona (£700m).

"The proposal is expected to increase employment, reduce administrative costs and cut prices in the restaurant sector," the government said in a statement.

If Sweden goes ahead with the cut it would be the latest in a long line of European countries to introduce cuts to VAT to help the hospitality sector. In July, Ireland dropped VAT for all goods and services related to tourism to 9% until the end of 2013.

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By Neil Gerrard

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