The German government has approved the Tax Amendment Act 2025. Starting January 1, 2026, the VAT rate for all food served in restaurants will be reduced to 7%. This change will support restaurants, cafés, bakeries, butchers, and catering businesses
Germany Lowers VAT on Food in Restaurants to 7% from 2026
Public
Germany
Author: Ivana Picajkić
Category:
Fiscal subject related
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15617
Content accuracy validation date:
11.12.2025
Content accuracy validation time:
08:24h
What changes on January 1, 2026?
- Food eaten on-site in restaurants will drop from 19% to 7% VAT.
- This creates a uniform 7% VAT rate for:
- dine-in food,
- takeaway food,
- delivery food.
In short: same VAT rate, no matter how customers buy their food.
Business owners have two strategic options:
- Lower prices
Restaurants can pass the VAT reduction on to customers. Lower prices may attract more guests and boost sales.
- Keep current prices
Restaurants can keep prices as they are and keep the VAT difference as additional margin.
Either way, more guests dining on-site may also increase beverage sales, which supports overall revenue.
What happens to beverages?
Nothing changes for now:
- 19% VAT continues to apply to drinks (except milk-based drinks with more than 75% milk — these drop to 7%)
VAT rates overview
|
Category |
VAT in 2025 |
VAT from 2026 |
|
Food eaten on-site |
19% |
7% |
|
Food without seating (snack bars, food trucks) |
7% |
7% |
|
Takeaway/delivery food |
7% |
7% |
|
Beverages (general) |
19% |
19% |
|
Milk drinks with >75% milk |
19% |
7% |
What should businesses change at their checkout?
Until December 31, 2025:
- 7% for dine-in food,
- 19% for takeaway/delivery.
From January 1, 2026:
- Only one VAT rate for food (7%),
- No need to switch between "eat-in" and "takeaway" price levels, checkout becomes faster and simpler.
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