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Germany to Reintroduce 7% Reduced VAT for Hospitality Food Sales in 2026
Summary
On April 9, 2024, Germany’s coalition government announced that the reduced 7% VAT rate for restaurant and café food will return on January 1, 2026. Originally introduced in 2020 as a COVID-19 relief measure, the rate had expired in early 2024. Its reinstatement is part of the government’s broader economic strategy.
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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.
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