Starting January 1, 2026, VAT on restaurant food will be permanently reduced to 7%. This change is part of the 2025 coalition agreement between CDU/CSU and SPD. To make it official, the VAT law will need to be updated in 2025.
Permanent Reduction in the Restaurant Sales Tax on Food from 2026 in Germany
Public
Germany
Author: Ivana Picajkić
Category:
Fiscal subject related
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Content accuracy validation date:
25.04.2025
Content accuracy validation time:
08:12h
However, the government will need to cover the cost of this tax cut in future budgets. The reduced VAT is expected to save businesses about €3.5 billion each year, but that also means the government will collect €3.5 billion less in tax revenue annually.
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