Due to the Tax Amendment Act 2025, reduced VAT rates have applied to the catering industry since the beginning of the year.

Due to the 2025 tax amendment law, reduced VAT rates have been in effect for the restaurant industry since the beginning of the year. (Photo: © Dmitry Ageev/123RF.com)

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Reduced VAT rate for the catering industry

Since January 1, 2026, a reduced VAT rate of 7 percent applies to restaurant and catering services – with the exception of beverages.

The German Confederation of Skilled Crafts (ZDH) has compiled information for food service businesses regarding the reduced VAT rate in the catering sector. The Tax Amendment Act 2025 permanently reduced the VAT rate for restaurant and catering services (excluding the sale of beverages) from 19 percent to 7 percent, effective January 1, 2026.

The aim of this measure is to provide economic support to the catering industry. The reduced VAT rate benefits not only restaurants, canteens, bars, and cafes, but also craft businesses such as butchers, bakeries, confectioneries, and ice cream makers that provide tables and chairs for on-site consumption by their customers, as well as catering and party service providers.

 

Background: Sales tax for the catering industry Detailed information and a fact sheet are available on the ZDH website. 

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Further news from the district of the Saarland Chamber of Crafts

Text: / handwerksblatt.de

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