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German Government Confirms VAT Reduction for Gastronomy to 7% Effective January 1, 2026

    The government plans to reduce VAT for gastronomy to 7 percent by January 1, 2026. This decision aligns with the coalition agreement. The government references studies and international experiences regarding VAT reductions. These studies suggest that VAT reductions can lead to lower prices for consumers. Partial passing of VAT reductions to consumers is considered acceptable. The aim is also to strengthen the supply side.

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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