- Germany will permanently reduce VAT on food served in restaurants and catering services from 19% to 7% starting January 1, 2026; beverages remain at 19%.
- The reform follows temporary VAT reductions during the COVID-19 pandemic and ongoing industry lobbying.
- The measure aims to support the hospitality sector, ease financial burdens, and improve competitiveness, especially near borders.
- Businesses must update IT systems, pricing, and invoicing to comply with the new VAT rate.
- The impact on consumer prices will depend on whether businesses pass on the savings.
Source: meridianglobalservices.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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