Denmark is preparing to abolish its 25 per cent VAT on books in a move aimed at reversing what officials are calling a “national reading crisis”. The proposed reform, announced by the country’s Culture Minister Jakob Engel-Schmidt, would make Denmark only the second EU country, after Ireland, to eliminate VAT on printed books entirely.
At the heart of the decision is growing concern over literacy, particularly among young Danes. Recent OECD PISA data indicate that around 24 per cent of Danish 15-year-olds perform below basic reading proficiency—an increase of approximately four percentage points over the past decade. The VAT reform, likely to cost the state the equivalent of around €44m annually, is a direct intervention to stem the decline.
“I believe that we must put everything at stake if we are to end the reading crisis that has unfortunately been spreading in recent years,” Culture Minister Jakob Engel-Schmidt told the Ritzau news agency.
A cultural shift
While the motivation is domestic, the proposed cut aligns seamlessly with broader European policy. The 2022 revision to the EU VAT Directive permits a zero per cent rate. That change gives member states greater freedom to apply reduced or zero rates to certain goods considered essential to public welfare, including printed and digital books.
The Danish reform takes full advantage of this flexibility. While most EU countries apply reduced VAT on books—typically between five and 10 per cent—a few, including Ireland (zero), Malta (one per cent) and Luxembourg (two per cent), have opted for the lowest rates allowed. At 25 per cent, Denmark has been a major outlier until now. If passed, the reform would take it from the top of the scale to the very bottom.
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The EU has not explicitly called for VAT exemptions on cultural products, but the 2022 reform provides legal space for such decisions, effectively endorsing the idea that access to reading and education can justify fiscal flexibility.
I believe that we must put everything at stake if we are to end the reading crisis that has unfortunately been spreading in recent years. – Jakob Engel-Schmidt, Denmark’s culture minister
Beyond VAT law, the cut, deliberately or not, would align with broader EU goals on literacy, education and social inclusion. The European Pillar of Social Rights, the EU’s guiding framework for inclusive policy, places “education, training and lifelong learning” as its first principle. Meanwhile, the Digital Education Action Plan and European Education Area promote equitable access to both traditional and digital learning resources.
If Denmark’s VAT cut also includes e-books and audiobooks, it would support the EU’s digital inclusion agenda. In that case, the reform would not just remove a cost barrier but potentially expand access to underserved or digitally dependent readers—an outcome Brussels has increasingly prioritised.
Sweden was also a trailblazer
In 2001, Sweden reduced its VAT on books from 25 to six per cent, resulting in a brief but significant rise in sales, largely among existing readers. Studies suggest there was little evidence the overall reading public had grown significantly. Culture Minister Engel-Schmidt has acknowledged this risk, noting that if prices do not fall or access does not widen, the government would revisit and reverse the policy.
Critics may question whether VAT policy alone can reverse broader cultural trends, including declining attention spans, the dominance of digital entertainment, and unequal access to early literacy. Still, publishers, libraries, and readers are likely to welcome the move, as are both dedicated and casual readers. A bet on increasing reading could pay off.
Culture Minister Engel-Schmidt was quoted across news outlets saying he was “incredibly proud.”
