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Germany to Keep Reduced VAT Rate for Restaurant Food Until 2026
Summary
The Federal Government confirmed it will maintain the 7% VAT rate for food served in restaurants from 1 January 2026, as agreed in the coalition deal.
Content
In a response to a parliamentary question from the Greens, the government referred to studies from the COVID-19 period and international data showing that VAT cuts sometimes lead to lower consumer prices.
However, it noted that not all savings need to be passed on, since the measure is also designed to support businesses on the supply side.
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