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Germany Restores 7% VAT on Restaurant Meals With New Year Tax Change

Industry leaders call it vital breathing room under rising wages and stubborn costs.

Overview

  • The reduced VAT rate now applies to meals eaten in restaurants nationwide from 1 January 2026, with beverages excluded.
  • Dehoga says the move improves fairness versus takeaway outlets and offers a chance to halt declining revenues.
  • The trade group cites steep increases in personnel, energy and goods since 2022, estimating overall cost growth around 30 percent.
  • A restaurateur reports personnel expenses up roughly 50 percent over five years and warns that tight margins limit any scope for price cuts.
  • Operators expect little direct relief for diners as the statutory minimum wage rises to €13.90 in 2026 and to €14.60 in 2027, though the measure may help prevent further closures after thousands since 2019.