- 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.
