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
Views:
5322
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.
Other news from Germany
New document was uploaded: S4FiscalBackoffice Patch
Author: Dejan Šijačić
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. Please make sure to install all available patches sequentially (without skipping). This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Germany Publishes New VAT Return and Prepayment Forms for 2026
Germany
Author: Ivana Picajkić
Germany has published new legally binding VAT return and advance-payment forms for 2026, released on 29 December 2025 and mandatory for all VAT filings via ELSTER. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Germany Publishes Its Electronic Business Address (GEBA)
Public
Germany
Author: Ivana Picajkić
Germany
Author: Ivana Picajkić
Germany has introduced the German Electronic Business Address (GEBA), published on 18 December 2025 by XStandards Einkauf, as a standardized electronic identifier to accurately route e-documents—especially e-invoices—within networks like Peppol. While GEBA is voluntary, it enhances interoperability, clarity of sender/receiver identification, and readiness for future digital tax and reporting frame... Read more
Germany: Businesses Must Prepare for E-Invoicing Earlier Than Expected
Public
Germany
Author: Ivana Picajkić
Germany
Author: Ivana Picajkić
Although mandatory B2B e-invoicing in Germany will only apply from 2027, businesses have been allowed to use e-invoices voluntarily since January 2025 and adoption is accelerating as 2026 approaches. As more suppliers switch early, companies operating in Germany already need to be technically ready to receive structured e-invoices to avoid compliance and operational disruptions. Although mandatory... Read more
Germany: Court Confirms Tax Authorities Can Request Tax-Relevant Emails During Audits
Germany
Author: Ivana Picajkić
German tax authorities are increasingly requesting tax-relevant emails during audits, and a 2025 Federal Fiscal Court ruling confirmed that such emails must be retained and disclosed when they contain relevant commercial or tax information. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Germany and France Update their Common E-Invoicing Standard
Public
Author: Ivana Picajkić
Germany and France will jointly update their hybrid e-invoice formats ZUGFeRD and Factur-X on 15 January 2026 to align with EN 16931 and support their upcoming B2B e-invoicing mandates. The new version expands technical capabilities, improves interoperability, and ensures full compatibility between both formats as Europe prepares for unified digital reporting under ViDA Germany and France have ann... Read more