Waiting for Christmas Without a Happy Ending: VAT in Gastronomy Rises Back to 19%

• The value-added tax on food in the gastronomy sector will be increased to 19 percent at the beginning of the year.
• The temporary reduction of the tax rate from 19 to 7 percent, implemented to support the gastronomy sector during the COVID-19 crisis, will end on December 31, 2023.
• The government majority opposed the plans to extend the tax reduction due to financial constraints.
• The return to the standard tax rate will have negative consequences for many gastronomy businesses, which are already struggling with rising costs and declining consumer demand.
• Gastronomy businesses will be forced to pass on the increased tax to their customers, which may further reduce the demand for dining out.
• The coalition government has agreed to review the complex tax system for food in the gastronomy sector.

Source: nwb-experten-blog.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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