VAT in gastronomy rises again
VAT on food in restaurants will be raised again to 19 percent at the beginning of the year. According to the Deutsche Presse-Agentur, this has been agreed by the traffic light coalition. The "Handelsblatt" had previously reported.
Takeaway, supermarket and delivery food will be taxed at seven percent. In order to relieve the gastronomy sector during the coronavirus crisis, the tax rate for food in restaurants and cafés was also temporarily reduced from 19% to 7%.
The regulation was extended several times due to the energy crisis, most recently until the end of this year. The industry had recently campaigned vehemently for the tax cut not to be allowed to expire.
Households visiting the hospitality industry may face higher costs due to the increase in VAT on food in restaurants, as the rate will go back up to 19% starting in the new year. This rise in taxes could potentially reduce the value added tax savings that the gastronomy sector has enjoyed during the coronavirus crisis, where food in restaurants and cafes was temporarily taxed at 7%.
Source: www.dpa.com
