September 25, 2025

Denmark Ends World’s Highest Book Tax to Fight Literacy Crisis

Share this article...

Denmark Ends World’s Highest Book Tax to Fight Literacy Crisis

What happens when a nation confronts a reading crisis head-on? Denmark has answered with a bold move by eliminating its 25% VAT on books, one of the highest such rates in the world. The BBC shared that “Finland, Sweden and Norway…also have a standard Value Added Tax (VAT) of 25% like Denmark - the VAT on books is 14%, 6% and 0% respectively. In the UK, books are also VAT-free.” This bid to make reading more affordable and revive dwindling literacy rates among Danes might just pay off in a big way. Here’s why this matters, and why others around the world are watching.

A Cultural Alarm Bell

Recent data revealed in the BBC’s report highlighted a startling statistic: one in four 15-year-old Danes can’t understand a simple text. That sobering insight prompted Culture Minister Jakob Engel-Schmidt to say: “"The reading crisis has unfortunately been spreading in recent years.” Engel-Schmidt went on to say that he is "incredibly proud" of the move to scrap the VAT, and that he firmly believes “massive money should be spent on investing in the consumption and culture” of Denmark.

If approved in the nation’s 2026 national budget, the move to nix the tax is expected to cost about 330 million kroner (approx. $40 million USD) annually.

Across the Nordic region, Denmark stands alone with its high VAT on books. As previously noted, Finland applies a 14% rate, Sweden just 6%, and Norway—outside the EU—has zero VAT on books. Among EU members, only Czechia and Ireland previously matched Denmark’s new zero-VAT approach, a move the Federation of European Publishers hailed as “positive for society as a whole,” according to the BBC’s deep dive into this issue.

Will Cheaper Books Mean More Readers?

Although denser bookstores may see more traffic, the impact isn’t guaranteed. After Sweden reduced its book VAT, studies revealed that the extra purchases didn’t necessarily come from new readers—they came from existing ones. Engel-Schmidt acknowledges this risk, warning: “If it turns out abolishing VAT only means that publishers’ profits grow and prices do not fall, then we must consider whether it was the right thing to do.”

Online, there are mixed opinions about the move. One Redditor commented that they welcome the VAT removal: “Book sales have been growing by 2.5% each year, and while fancy editions can cost 20€ or more, there's also plenty of cheap books in the 5-10€ range. Add a 25% discount thanks to the VAT removal and you're gonna see teenagers coming out of libraries with their hands full of books.” Another, however, said they “don't see a lot of people [sic] suddely buying books because they cost 20 instead of 22 local currency.”

Only time will tell which camp is correct.

To reinforce the policy, Denmark’s strategy includes strengthening connections between lending libraries and schools, encouraging early exposure to literature and expanding access beyond price alone.

What About Other Countries?

Several nations already tax digital publications, like e-books, at different rates than print—some exempt, others taxed—creating a rather complex landscape in regard to taxation. In the U.S., for example, sales tax on digital books varies widely by state; in most cases, e-books are taxed at the same rate as physical copies, or exempt in educational contexts.

Now, with the EU’s VAT in the Digital Age (ViDA) reforms, which allow broader application of reduced or zero VAT rates for cultural goods like books, Denmark’s move is symbolic of a broader policy shift. Nations grappling with shifting reading habits and digital competition may look to Denmark’s example for cues.

Why It Matters Beyond Taxes

This isn’t just about spreadsheets and budgets. It’s about culture. Imagine being a young reader in Denmark. Removing financial barriers to purchasing books might mean discovering a beloved author, frequenting a library, or sparking a habit that shapes your worldview. Books have been part of human culture of thousands of years, and the idea of high percentages of people becoming non-readers is worrisome on a number of levels. Making books more accessible is as much an investment in equity, civic literacy, and shared culture as it is in the economy.

If similar moves appeared in countries like the U.S., the cultural implications could be just as profound. Local bookstores, for example, might benefit, schools could integrate more diverse texts, and readers everywhere might catch a break from constant online distractions and screen fatigue.

Denmark’s plan to eliminate the VAT on books is a rare tax move fueled by public purpose. While cost savings may help, pairing it with educational outreach is key to shifting behavior—and potentially restoring reading to the cultural forefront. As the global spotlight turns north, one thing is clear. This isn’t just a tax story—it’s a move that many hope will spark a cultural renaissance, priced in kroner but potentially paid back in a richer, more literate society.

Printable PDF

Information Center

Denmark Ends World’s Highest Book Tax to Fight Literacy Crisis

Have a Question About This Topic?