Germany coalition government to reintroduce 7% reduced VAT rate for hospitality from 1 January 2026

1 May 2025

The German government has confirmed the reinstatement of the 7% reduced VAT rate for food sales by hospitality businesses, from 1 January 2026.

This VAT rate reduction was put in place from 2020 up until 1 January 2024 as a COVID-relief to help restaurants and cafes during the pandemic.

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