In the coalition agreement, various measures were agreed to reduce the tax burden on the catering industry. This also includes a reduction in VAT for restaurant and catering services (excluding drinks) to seven percent from 2026.
On Thursday, December 4, 2025, the Bundestag passed a comprehensive tax relief package. This received the necessary approval from the Bundesrat on December 19 and will therefore come into force on January 1, 2026.
Planned reduction in sales tax for restaurant and catering services
With several economic stimulus packages and the resulting measures to overcome the coronavirus crisis, a reduced tax rate of 7% or even 5% in some cases applied in the hospitality industry from July 1, 2020 to December 31, 2023. Since these special regulations expired during the coronavirus crisis, the previous tax rates have applied again since the start of 2024. Since then, industry associations in particular have repeatedly called for an extension or permanent reduction in VAT for the affected sectors. This demand has now been taken into account in the current black-red coalition agreement and the ongoing 2025/26 legislative process.
Permanent VAT reduction for food in the catering sector from 2026
From 01.01.2026, the legislator plans to reduce VAT on food to seven percent across the board. This uniform tax rate for meals would mean that it would no longer be necessary to differentiate between meals delivered, taken away or consumed on site. However, this reduced VAT rate explicitly only applies to food. The current legislative process does not provide for any future tax reductions for drinks. The previously applicable tax rates will continue to apply to this product group. In addition to traditional restaurants and snack bars, related industry segments such as bakeries, food retailers and catering service providers are also likely to benefit from the new regulations.
Changeover of VAT rates on the cut-off date
When converting the tax rates in the POS system, care must be taken to ensure that the new, reduced tax rates are only stored for items from the food group at the appropriate time. The changeover may only be carried out on the cut-off date. Your specialist retailer will be happy to help you with technical questions regarding the storage of the new VAT rates in your bluepos® POS system. Please contact your tax advisor directly if you have any questions regarding tax law.
