Dear visitor,
To provide you with the best possible service, we use cookies. Some cookies are necessary for the operation of the website. Other cookies for anonymous statistics, language preferences or the display of third-party content are optional. Depending on your choice, your consent also includes a transfer of data to recipients in third countries without an adequate level of data protection, such as the USA in particular, with the risk of access by authorities there without legal recourse. Under Data Privacy, you will find further information and can adjust the settings for cookies at any time.

7 percent VAT - more than just a number for restaurateurs

The food service industry is hoping for major tax relief: in the spring of 2025, the CDU, CSU and SPD agreed in the coalition agreement that VAT on food would be reduced to 7% from January 2026. The decision has not yet been enshrined in law, but the signs for a permanent reduction are good.

This translation was created from the original text using AI (DeepL).
VAT: Will it remain at 7%?
Less VAT, more stability: relief for restaurateurs, security for guests, but no economy menu.
What about value added tax?

What is it all about?

  • What is the legislative status of VAT for the catering industry in Germany?
  • What does the VAT reduction mean for restaurateurs?
  • What does 7 percent VAT mean for guests?
Content:

What does the VAT reduction mean for restaurateurs?

For many restaurateurs, VAT is a matter of survival. "All costs in the hospitality industry have exploded in the last two years. Staff costs have risen by around 40 percent and food prices have doubled," says restaurateur Kemal Üres in an interview with Rolling Pin, who is campaigning strongly for the 7 percent VAT with the "United for Gastronomy" initiative. For him, one thing is clear: "At the moment, hardly any restaurateurs are making a profit, the industry is in danger. Only by reducing VAT can they fight their way back to life. This is the only way to save the industry."

Other industry giants also welcome the political signal - but urge caution. METRO manager Martin Behle emphasizes: "The road is still very long and uncertain, one can only hope. People are happy about the announcements and are extremely relieved. It gives them courage and prospects - this shows that the sectors are regaining faith in their trade as a result of this announcement."

What does 7 percent VAT mean for guests?

For many restaurateurs, the reduction in VAT is above all a much-anticipated relief that they want to reinvest. Many businesses are initially planning to invest the potential tax savings primarily in staff retention and quality. Take Gunter Braun from Ratskeller Speyer, for example. He told SWR that he wanted to invest the money saved on tax in staff first. And this is entirely in line with the policy, as DEHOGA President Gereon Haumann put it to SWR: "The coalition agreement states that the reason for the lower restaurant tax is 'to relieve the industry' and not 'to relieve the citizens'."

Nevertheless: guests benefit. Not necessarily through the amount on their receipt, but by keeping their favorite cafés, restaurants and pubs. The reduction ensures that hosts do not have to give up and that enjoyment, encounters and variety do not become a luxury. The 7 percent VAT is therefore an investment in the future of the hospitality industry.

Hospitable(er): Less bureaucracy for new restaurant founders

If you want to open a restaurant today, you often need more patience than guests. But this is changing - at least in parts of Germany. Baden-Württemberg is now getting serious about reducing bureaucracy: instead of waiting for a license, a simple notification to the authorities will suffice in future. Sounds unspectacular, but it's a real game changer for restaurant founders in the southwest.

The reform is based on other federal states: In Hesse, Brandenburg and Saxony-Anhalt, mandatory notification has long been standard practice. Eight states have already introduced it and others - such as Rhineland-Palatinate - are following suit. Discussions are still ongoing in NRW, while Bavaria, Berlin and Hamburg are sticking with the classic approval procedure for the time being.

What are the benefits? Less paperwork, faster openings - and perhaps also more variety on the menus. The hotel and restaurant association Dehoga welcomes the reform: it makes it easier to hand over businesses and lowers the barriers to entry for new restaurant concepts.

And what remains? The background check for serving alcohol - of course. But the rest will be much leaner.

NEXT COURSE: