Restaurant visit
Food after gastro tax reduction does not necessarily cheaper
The future government wants to permanently reduce VAT for food in the catering trade. However, it is questionable whether the host will pass on the savings to customers.
The planned VAT cut to food in the catering trade does not always mean lower prices for guests of restaurants. “How the innkeeper react to the reduction in VAT and to what extent you can adapt your prices will be significantly dependent on the cost development,” said the general manager of the Dehoga Federal Association, Ingrid Hartges, the editorial network Germany (RND).
“Many of our companies stand with their backs to the wall,” said Hartges. According to a survey by the association, almost 40 percent of entrepreneurs feared to slide into the loss zone in 2025.
The majority of the costs go for personnel and the use of goods
In their coalition agreement, the CDU, CSU and SPD announced that the VAT for dishes in the catering trade from January 1, 2026 should be reduced from 19 percent to 7 percent.
The expenses of restaurateurs, for example for personnel, food or drinks, have recently increased enormously, said Hartges. “You have to know that in most companies there are 70 percent of sales for personnel and goods operating costs.”
dpa
Source: Stern
