Denmark is set to eliminate its 25% value-added tax (VAT) on books, a move aimed at combating declining reading habits and making literature more accessible. Publishers say the change could lower book prices by up to 20%, benefiting consumers and revitalizing a struggling reading culture.
Government Proposes to Eliminate Book VAT
The Danish government has put forward a proposal in its latest budget plan to scrap the country’s 25% VAT on books—currently the highest book tax rate in the world. The measure is part of a broader cultural strategy aimed at reversing a national reading crisis, particularly affecting children and young adults.
The initiative comes from the Ministry of Culture, which has worked closely with a task force comprising authors, publishers, and literacy experts. Together, they concluded that reducing the cost of books could play a pivotal role in re-engaging the Danish public with reading.
According to the Ministry, the annual cost of this policy would be about 330 million kroner (approximately $48 million USD), which the government intends to fund from the country’s fiscal surplus.
Publishers Promise Lower Prices
Major players in Denmark’s publishing industry, including Gyldendal, the largest publishing house in the country, have welcomed the proposal, calling it a transformative opportunity for literature. Industry leaders pledge that the full removal of book VAT will translate into lower prices for consumers, reducing average book prices by about 20%.
The managing director of Gyldendal said the VAT cut will make books significantly more affordable for the broad segment of price-conscious consumers. However, she also noted that certain technical and tax issues, such as payroll taxes for VAT-exempt companies, still need to be clarified before exact price changes can be confirmed.
Better Access, Not Fewer Books
The Danish Publishers Association echoed similar sentiments, stressing that eliminating VAT will make books more financially accessible and support the general promotion of reading. According to a 2024 analysis from Dansk Erhverv (The Danish Chamber of Commerce), nearly 25% of Danes say they would buy more books if prices dropped by one-fifth. Among younger Danes aged 18 to 24, the interest in buying books increases even more substantially with such a price reduction.
Notably, 6% of individuals who currently don’t buy books at all indicated they would begin purchasing literature if prices became more affordable.
Addressing Denmark’s Reading Crisis
The VAT removal comes amid mounting concern over plummeting reading levels in Denmark. International studies such as PISA and PIRLS (Progress in International Reading Literacy Study) have shown that Danish children are underperforming in reading compared to their peers globally. Furthermore, Denmark ranks among the countries where the fewest children express enjoyment in reading.
Experts believe economic barriers are a crucial part of the problem. By making books more financially accessible, the policy aims to widen exposure to literature, particularly among children and young adults who may not already be immersed in a reading environment.
Lessons from Sweden
Denmark’s move follows a similar policy enacted in Sweden, where the VAT on books was reduced to 6% back in 2001. While the Swedish example did lead to increased sales, it mostly benefitted existing readers, without significantly expanding the reader base.
However, Danish advocates for the measure argue that the broader cultural conditions are different, and recent consumer research points to more promising outcomes in Denmark. Additionally, the government has expressed a clear commitment to monitoring results to ensure the savings are passed on to consumers and not absorbed by publishers.
Monitoring Impact and Ensuring Accountability
The Ministry of Culture has pledged to maintain oversight of book pricing following the VAT change to ensure that publishers follow through on promises to reduce prices. The government is also exploring complementary initiatives to promote literacy, such as public library expansions and school reading programs.
With books expected to become significantly cheaper and more accessible in coming years, Denmark hopes to ignite a nationwide revival of reading, especially among the youth, helping to prepare future generations with stronger literacy, civic awareness, and mental well-being.
