Germany Faces Opposition to Restaurant VAT Reduction from 19% to 7%

• Germany plans to reduce VAT for restaurants from 19 to 7 percent starting 2026 but faces growing opposition from federal provinces
• Lower Saxony Finance Minister Gerald Heere warns the measure will cost the state budget over 3.6 billion euros in the first year alone
• Tax authorities regularly find violations in about one third of restaurant inspections, with recent cases involving hundreds of millions in tax evasion
• Lower Saxony demands mandatory cash register systems and digital payment options for restaurants to combat tax fraud
• The province criticizes federal government proposals that leave too many loopholes for potential tax evasion in the restaurant sector

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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