On 22.04.2020, the coalition committee agreed on further relief in Germany to deal with the Corona crisis. Among other things, it was decided to reduce the VAT on food in restaurants to the reduced rate of 7% from 1 July for a limited period until 30 June 2021.
Up to now, the full VAT rate of 19 % has applied to food consumed “on the premises” (restaurant or managed outdoor area) in the catering trade. On the other hand, the reduced rate of 7 % applies to all food sold for takeaway or delivery and for consumption “away from home”.
From 01.07.2020, the reduced tax rate of 7% will generally apply to all meals. According to the coalition committee, this relief is initially limited to 1 year, until 30.06.2021.
This relief only applies to food, beverages are not affected. When changing over to the reduced rate, care should therefore be taken to enter the reduced rate only for items belonging to the food group. This changeover may not be made until 01.07.2020. We will document suitable conversion procedures for our S-700 bluepos® cash register system in good time before this date.