- Germany plans to permanently reintroduce a reduced 7% VAT rate for the hospitality sector from January 1, 2026.
- The reduced VAT was originally introduced in 2020 as a temporary relief during the COVID-19 pandemic and extended several times.
- The VAT rate returned to the standard 19% in January 2024, which was criticized by many in the industry.
- The new proposal is part of broader economic policies aimed at stabilizing the sector long-term.
- The change still requires approval from the government cabinet and both houses of the German parliament.
Source: eurofiscalis.com
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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