Overview

• The federal coalition has set the VAT on dine‑in meals to drop from 19% to 7% on January 1, 2026, reinstating the pandemic‑era rate.
• NGG regional leaders in the Ruhr area and Augsburg say prices are unlikely to fall and urge guests to note current menu prices and compare them after the change.
• Industry representatives from DEHOGA reject accusations of pocketing the relief and say there will be no automatic price reductions given tight operating conditions.
• Restaurateurs cite rising costs—including food, energy, wage agreements and a higher minimum wage set to reach €13.90 in January 2026 and €14.60 in 2027—as limiting room to lower prices.
• Economists at ZEW estimate the tax change will reduce public revenues by about €3 billion annually, as sector data point to weak demand and stress for many venues.