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Restaurant VAT Cut in Germany Brings Mixed Price Changes

Industry representatives say the measure offers breathing room for operators facing cost pressures.

Overview

  • Since January 1, restaurants pay 7% VAT on meals instead of 19% across Germany.
  • In Hannover, several restaurants have lowered menu prices, including a €2 cut on a Schnitzel and reductions at a starred venue.
  • Dehoga’s Hannover branch says there is little room for broad list-price cuts, though customers may benefit indirectly.
  • Reporting from Gladbeck shows many restaurateurs are keeping prices unchanged despite the lower tax.
  • How long individual discounts will last and whether more businesses pass on savings remains unclear.