Denmark to Abolish 25% Book VAT to Boost Reading and Cultural Engagement
August 20, 2025
Denmark plans to abolish the 25% VAT on books, which is currently the highest book sales tax in Europe, in an effort to boost reading and cultural engagement.
Surveys show that reading levels among Danish teenagers are decreasing, partly due to digital media and numerous distractions, prompting government efforts to promote literacy.
This move is part of broader efforts to promote Danish literature, digitalize the book market, and support authors, although VAT removal alone is considered only a partial solution.
The government estimates that removing VAT will cost about 330 million kroner ($50 million) annually and aims to make books more affordable, especially following pressure from publishers.
Culture Minister Jakob Engel-Schmidt announced that the policy change will be proposed in Denmark's upcoming budget bill, with a review planned if prices do not decrease as expected.
The initiative aims to address declining reading levels among Danish youth, particularly the fact that 24% of 15-year-olds cannot understand a simple text, an increase of four percentage points over ten years, according to OECD data.
Experts highlight distractions and the abundance of digital options as reasons for declining reading skills among teenagers, emphasizing the importance of improving accessibility to literature.
The government has allocated funds to strengthen cooperation between public libraries and schools to promote literature and improve literacy among children.
This literacy initiative responds to concerns raised by the OECD and Pisa studies, which reveal that a significant portion of Danish youth struggles with reading comprehension.
The most popular book genres in Denmark include books for young children, picture books, activity books, and crime and thriller novels, reflecting diverse reading interests.
Beyond VAT removal, Denmark is exploring ways to promote its literature abroad, digitalize the book market, and support authors, recognizing that VAT reduction alone is insufficient.
Danish publishers have supported the VAT reduction, emphasizing the importance of maintaining access to printed books across all age groups.
Summary based on 5 sources
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Sources

The Guardian • Aug 20, 2025
Denmark to abolish VAT on books in effort to get more people reading
BBC News • Aug 20, 2025
Denmark scraps book tax to combat "reading crisis"
BBC News • Aug 20, 2025
Denmark scraps book tax to combat "reading crisis"
Le Monde • Aug 20, 2025
Denmark to end book tax to encourage people to read