- VAT in the German restaurant industry is governed by the German VAT Act (UStG), with a standard rate of 19% and a reduced rate of 7% for certain essentials.
- The applicable VAT rate depends on the type of service: 19% for food consumed on the premises with additional services, and 7% for takeaway or minimal service (e.g., snack bars, food trucks).
- Recent and upcoming changes to VAT regulations have created challenges and uncertainties for restaurants, especially following COVID-related adjustments.
- Errors in VAT application can have significant legal and financial consequences for businesses.
- The article also highlights practical challenges for both traditional restaurants and online food and beverage retailers regarding VAT compliance.
Source: stripe.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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