German Hospitality Sector Faces Revenue Decline, Urges Return to Reduced VAT Rate

• The German hotel and restaurant sector reports a decline in revenue.
• The sector is advocating for the return of the reduced VAT rate.
• Revenue fell by 3.7 percent in the first half of 2025 compared to the previous year.
• Restaurants experienced a 4.1 percent drop in revenue, while hotels saw a 2.6 percent decline.
• The decline is linked to the return of the full 19 percent VAT rate on food in 2024.
• The temporary reduction to 7 percent was introduced during the pandemic.
• The new German government plans to reinstate the reduced rate next year.
• DEHOGA describes the return to a 7 percent rate as crucial for many restaurants’ survival.
• The NGG union warns consumers not to expect price reductions if the lower rate is reintroduced.

Source: bta.bg

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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