Cheaper Milk, Pricier Oat Drinks: Food VAT Cuts Leave Plant-Based Products Behind in 12 EU States

A report from the European Vegetarian Union (EVU) reveals that twelve EU Member States tax plant-based foods more heavily than their animal-based counterparts, contributing to higher prices for such products. The study, which analyzed VAT rates on 33 product categories, shows significant disparities where plant-based drinks, meat, and cheese face higher taxation—up to 21% more expensive at the checkout—compared to cow's milk and other animal products. Notably, Hungary, Croatia, and Italy have the steepest tax rates, applying 27%, 25%, and 22% VAT on plant-based options, respectively.

The report highlights that recent VAT cuts on essential animal products, such as Hungary's reduction for milk and Austria's for butter, exacerbate this issue by excluding plant-based alternatives. While some countries like Czechia, Portugal, and Belgium have aligned their VAT rates for plant-based drinks with those of cow's milk, the EVU calls for the European Commission to provide common guidance on the VAT classification of plant-based foods to address these discrepancies effectively. This initiative is in line with the EU Protein Plan, aiming for equitable taxation across all food categories.