- Germany will reintroduce a 7 percent VAT rate on restaurant and catering services from January 2026.
- The measure aims to support the hospitality sector and simplify VAT compliance.
- The reduced rate excludes beverages and follows a temporary reduction during the COVID-19 pandemic.
- Objectives include economic support, avoiding competitive distortion, and simplifying VAT treatment.
- Businesses should prepare for changes in menu structuring, vouchers, and pricing before the 2026 implementation.
Source: marosavat.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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