The 5 VAT Categories in Vendion

When Variable VAT is enabled in Vendion, your entire product catalog is sorted into five VAT categories. The category drives how VAT is calculated together with the order format. You set the category once per menu group, and each product inherits automatically — just like Ancon and other leading Swedish POS systems handle it.

This article walks through all five categories, which goods belong where according to the Swedish Tax Agency, and shows with examples how the category affects the VAT rate.

Why five categories and not more?

Swedish VAT rates for restaurants cover three values: 25%, 12%, 6%, plus 0% for exempt special cases. Vendion has modeled this as five categories rather than four, since food and non-alcoholic beverages actually have a dual rate — they "shift" between 12% (served) and 6% (takeaway) depending on the order format. All other goods have a fixed rate regardless of order format.

Five categories cover 99% of all restaurant goods. If a sixth is needed down the line (say, for tobacco), it can be added without affecting existing configuration.

Category 1 — Food / non-alcoholic beverage

Examples of goods:

• Main courses, starters, desserts
• Pizza, burgers, salads, soups
• Sides: bread, butter, sauces
• Coffee, tea, soft drinks, juice, tap water
• Light beer (up to 3.5% abv)
• Smoothies, non-alcoholic milkshakes

VAT behavior:

This is the category where the April 2026 reform takes effect. The same burger has 12% VAT if the guest sits at a chair and 6% if they take it home. Non-alcoholic beverages follow the same rule because they count as part of the restaurant service when served.

Tax Agency line-drawing: If the product is consumed in direct connection with the sale with a chair, table, or service involved = restaurant service (12%). If the product leaves the premises without service = foodstuff (6%).

Category 2 — Alcoholic beverage

Examples of goods:

• Beer above 3.5% abv (standard lager, IPA, stout)
• Cider above 3.5%
• Wine (red, white, rosé, sparkling)
• Spirits (whisky, gin, vodka, rum, cognac)
• Liqueur, aperitif, digestif
• Drinks and cocktails
• Alcopops and premixed drinks

VAT behavior:

Alcohol is always 25%, regardless of order format. This is a Swedish rule in effect since restaurant VAT was introduced in 2012, and was not touched by the 2026 reform. The government's rationale: they do not want to create a tax incentive for at-home alcohol consumption.

Practical note: Even if a guest orders a bottle of wine for takeaway alongside the food, the wine is 25% while the food is 6%. Vendion sets the correct rate per line automatically.

Tip about non-alcoholic beer: Light beer up to 3.5% abv does not count as alcohol for VAT purposes. Put it in the Food / non-alcoholic beverage category and it gets 12% served / 6% takeaway.

Category 3 — Other goods 25%

Examples of goods:

• T-shirts, sweaters with the restaurant logo
• Merchandise: fridge magnets, keychains
• Cookbooks (if they are hardcover gift books — see exception below)
• Spice packs, oil, vinegar sold as retail products
• Packaged sweets and chocolate boxes as gift items
• Corporate gift cards (special cases)

VAT behavior:

This is standard VAT for goods that are neither foodstuffs, books, nor other special categories. If you run a restaurant shop or sell merchandise, it belongs here.

Tip: If you sell self-produced products for takeaway (e.g. a jar of sourdough starter or a pack of sauce), it counts as foodstuff (6%) — not merchandise (25%). Put it in the Food / non-alcoholic beverage category instead.

Category 4 — Other goods 6%

Examples of goods:

• Books (cookbooks, menu history, restaurant stories)
• Newspapers and magazines
• Menu booklets sold as collectibles
• Concert and culture tickets (if you sell them for show nights)

VAT behavior:

This is cultural VAT — a long-standing rate for books, newspapers, cinema, theater, and cultural services. It has nothing to do with the 2026 reform; some restaurants have just never used it.

Practical: Most restaurants have nothing in this category. If you sell your chef's cookbook at the front desk or have a small library of restaurant books to take home, this is the category.

Category 5 — Exempt

Examples of goods:

• Issuance of gift cards (the sale itself — VAT arises on redemption)
• Complimentary gift to guest on special occasions (0 SEK line)
• Deposit from guest (security deposit later refunded)
• Certain service brokering in special cases

VAT behavior:

Important nuance for gift cards: Under Swedish VAT Act Ch. 5 § 40, the sale of a multi-purpose voucher (gift card usable for any product) is VAT-exempt at issuance. VAT is realized only when the guest redeems the card for an actual product. Vendion handles this automatically by flagging gift card sales as "issuance" (0% VAT, booked to account 2421 Gift Card Liability) and then calculating correct VAT when the card is used.

When should you use Exempt manually? Almost never. Gift cards are handled automatically. Other use cases (deposits, special services) are rare and should be confirmed with an accountant before using the category.

How Vendion uses the categories

VAT category is set per menu group:

1. Go to Admin → Menu → select menu group → VAT Category field.
2. Pick one of the five categories.
3. All products in the menu group inherit automatically.
4. If a single product needs a different category (e.g. a specific bottled water in a bar group), you can set a per-product override.

Vendion then combines VAT category + order format per the matrix in the next article.

Overall overview

Frequently asked questions

"What happens if I forget to set a category on a menu group?" Vendion falls back to the Food / non-alcoholic beverage category by default, since that's what >90% of restaurant items are. You get a reminder in Admin about menu groups without an explicit category.

"Can I mix categories within one order?" Yes. A typical lunch can contain a burger (Food, 12%), a beer (Alcoholic beverage, 25%) and a t-shirt as an impulse buy (Other goods, 25%). Vendion calculates the correct VAT per line.

"Who decides what's food and what's alcohol?" The Tax Agency has clear rules. In general: beverages above 3.5% abv are alcohol. Food is all edible products that are not alcohol or medicine. When in doubt — consult the Tax Agency's legal guidance or your bookkeeper.

Source: Swedish VAT Act Ch. 7 § 1, VAT Act Ch. 5 § 40 (gift cards), Tax Agency legal guidance "Restaurant and catering services", SKVFS on reduced food VAT 2026.