VAT, or value-added taxes, is an obligatory tax that you much pay when purchasing items deemed non-essential. For instance, if you buy bread, butter, condiments, pasta, sauces, and vegetables, you pay the price on the price tag. For many other things, you have to tack on an additional 20-ish percent on top of the price tag.
Sweden also imposes VAT on non-essential items. However, Sweden’s VAT is the highest in the world. With a 25% VAT, people who are short on cash will think twice about purchasing non-essential items like cigarettes, alcohol, or even candy.