Overview
- Parliament has finalized the change, reducing VAT on prepared food from 19 percent to 7 percent effective January 1, 2026.
- Restaurants, bakeries, butcheries with on‑premise service, caterers, and institutional providers such as schools and hospitals fall under the lower rate, while drinks stay at 19 percent.
- Major chains including L’Osteria and Nordsee say they will not implement broad price reductions, citing higher labor and ingredient costs and prioritizing price stability.
- Economists expect only partial pass‑through to consumers, with the tax cut more likely to slow future price increases than deliver noticeable menu price drops; some operators plan targeted promotions.
- Backers, including DEHOGA, say the move supports a strained sector and simplifies inconsistent rules that had treated dine‑in, takeaway, and delivery differently, as critics question sector‑specific relief.