Particle.news
Download on the App Store
3 ARTICLES
·
last wk.

Germany to Permanently Cut VAT on Restaurant Meals to 7% Starting 2026

Union-SPD coalition finalizes a tax reduction for dining out, but polls reveal strong public preference for supermarket food VAT cuts instead.

Image

Overview

  • The upcoming Union-SPD coalition plans to reinstate a 7% VAT rate on restaurant meals permanently from January 1, 2026, as outlined in their coalition agreement.
  • A recent YouGov poll shows 81% of respondents support the VAT reduction, but 77% believe restaurants will use the relief to offset rising costs rather than lower menu prices.
  • Half of those surveyed expect cheaper restaurant prices, while 74% say they would dine out more often if prices drop.
  • More than three-quarters of respondents would prefer a VAT cut on supermarket groceries over the restaurant-focused measure.
  • The SPD's proposal to lower VAT on essential supermarket items from 7% to 5% was excluded from the coalition agreement, reflecting internal compromises.