Uniform VAT regulations for food in the catering trade
As expected, the “Tax Amendment Act 2025” was passed in the Bundesrat shortly before the turn of the year. This also contains regulations on reduced VAT on food and aims to strengthen the food service industry in Germany. In particular, restaurants, bakeries, butchers, food retailers, catering providers as well as daycare, school and hospital catering providers are to benefit from the new regulations. The catering industry is under high cost pressure due to many factors, so the tax relief will probably be used primarily to reduce its own costs and not passed on to guests.
A reduced tax rate for food already applied in a similar form during the coronavirus crisis and restaurateurs and industry associations have repeatedly called for its continuation since the regulations expired. Above all, the catering industry demanded equal treatment in competition with delivery services and food retailers, which have been subject to a reduced VAT rate ever since
What applies in Germany in 2026
VAT (sales tax) on food in restaurants has been permanently reduced from 19 percent to 7 percent
- 7% – Food: The scope of application applies exclusively to food in the catering trade (e.g. restaurants and cafés), regardless of whether it is consumed on site or off-site.
- 19% – Beverages: The previous tax rate continues to apply to beverages.
Note: However, there are also various special cases to consider, which may affect the applicable tax rate depending on the scenario. Special features may apply, for example, to catering with elaborate preparation (keyword: service), mixed drinks with different ingredients (keyword: staple food) or the (reusable) crockery used.
In bluepos®, all tax rates can be stored in the POS system for each type. Your specialist retailer will be happy to help you with the programming. Please contact your tax advisor directly if you have any questions regarding tax law.
