General subject related
On April 9, 2024, Germany’s new coalition government (CDU and SPD) announced that the reduced 7% VAT rate for food sold by restaurants and cafes will return starting January 1, 2026. This lower rate was originally introduced as a temporary COVID-19 relief measure in 2020 but expired at the start of 2024. The decision is part of the coalition’s broader economic policy plan.
Other news from Germany
New document was uploaded: S4F backoffice patch
S4F backoffice patch is intended for users who have already installed S4F backoffice and are intended to update existing installations to latest version. To do so apply only patches that are marked with version number that is newer than your currently installed instance of backoffice. Read more
Germany: E-Invoicing in Hesse

In the German state of Hesse, e-invoicing has been mandatory for suppliers to public bodies since April 18, 2024, following EU directives and the state’s own 2020 E-Invoicing Regulation. Invoices must comply with the European EN 16931 standard and be submitted through designated digital channels. Read more
Permanent Reduction in the Restaurant Sales Tax on Food from 2026 in Germany

Starting January 1, 2026, VAT on restaurant food will be permanently reduced to 7%. This change is part of the 2025 coalition agreement between CDU/CSU and SPD. To make it official, the VAT law will need to be updated in 2025. However, the government will need to cover the cost of this tax cut in future budgets. The reduced VAT is expected to save businesses about €3.5 billion each year, but... Read more
„Germany Pays Digitally “ Initiative: Digital Payments May Soon Be Mandatory

Although over 70% of German consumers prefer digital payments, many small businesses still don’t accept them—unlike peers in countries like Sweden and the Netherlands. Read more
Reminder: Small Businesses Must Be Able to Receive and Store E-Invoices in Germany

Starting January 1, 2025, small businesses in Germany must be able to receive and archive electronic invoices, even if they are not required to issue them. Read more
Germany: Peppol BIS Billing 3.0 and XRechnung Now Interchangeable for E-Invoicing

Germany now recognizes Peppol BIS Billing 3.0 and XRechnung as functionally equivalent for e-invoicing public authorities, giving businesses the flexibility to use either format. Read more