COVID cut from 19% to 7% on restaurants, cafes and catering rolled over until end of 2023 on inflation worries
As part of a €65 billion relief measures, including cutting VAT on gas to 7%, German is to extend the COVID-19 cut on hospitality services. This reduction from the standard 19% rate to 7% reduced was due to expire on 31 December 2022. This is the second extension of the tax subsidy for food supplied in restaurants, cafes and catering services.
The Federal Council (Bundesrat) has now approved the change, and it will be gazetted.
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Original German restaurant VAT 7% rate was due to end 31 December 2022
The VAT rate on restaurants and catering was cut from the standard rate to the reduced rate until 31 December 2022 (5% for 2020; 7% for 2021). The temporary cut in VAT on restaurant services was first planned to end on 30 June 2021. It was then extended until the last deadline, 31 December 2022.
European inflation VAT cuts are being brought forward as inflation surpasses recent records.
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