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Government Deliberates on Reducing VAT for Gastronomy, Excludes Beverages from Tax Cut

The German federal government is debating a reduction in the sales tax on food in the gastronomy sector to provide economic support, though beverages are excluded from this proposed change. This tax cut, which is not part of a broader reform of the national sales tax system as outlined in the coalition agreement, is estimated to result in a revenue loss of at least €14.54 billion between 2026 and 2029.

Source: datenbank.nwb.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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