Reduction of VAT in the German Hospitality Industry

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A uniform tax rate of 7% for food is expected to take effect from January 1, 2026. In this article, you will learn what to keep in mind if this draft law is actually passed, which tax rates will then apply, and how you can implement the change in our management software mocca.admin with just a few clicks.

Uniform tax rate of 7% on food

According to current legislation, the VAT rate for food depends on the type of consumption: on-site 19%, takeaway 7%. Starting in 2026, a uniform tax rate of 7% for food in the hospitality sector is planned. The VAT reduction has not yet been finalized; the draft is currently under review (as of November 18, 2025).

Until December 31, 2025, the following VAT rates apply:

Food consumed on-site: 19%
Food for takeaway: 7%
Beverages: 19%

What may change as of January 1, 2026?

Food provided as part of restaurant and catering services will in future be taxed uniformly at 7%—regardless of whether consumed on-site or off-premises. Beverages will remain at 19%.

The new regulation applies to:

Caterers as well as daycare, school, and hospital catering
Restaurants, bakeries, butcher shops
Grocery retailers offering prepared food

Step-by-Step Guide for Adjustments in mocca.admin

Find here a step-by-step guide (in German) for easily changing the tax rate in our central management software mocca.admin. Please check before making the change that the client configuration is visible in mocca.admin. After completing the adjustment, verify on a receipt printout that the tax has been applied correctly.

All mocca® systems are already prepared

All systems have already been updated to the required version (see step-by-step guide). With ventopay, you are fully prepared for the planned VAT reduction.

We’ll keep you informed

As soon as there are any updates on this matter, we will inform you.

Sources:

Draft law, German Bundestag, 18.11.2025: Deutscher Bundestag Drucksache 21/1974 Gesetzentwurf der Bundesregierung Entwurf eines Steueränderungsgesetzes 2025
DEHOGA statement, 18.11.2025: Stellungnahme DEHOGA
Steuer Kettwig, 18.11.2025: Umsatzsteuersenkung in der Gastronomie ab 2026 – steuer-kettwig.de

FAQ:

How is restaurant and catering service defined?

This is regulated in Council Implementing Regulation (EU) No. 282/2011 laying down implementing measures for Directive 2006/112/EC on the common system of value added tax, Chapter IV, Article 6:

- (1) Restaurant and catering services mean the supply of prepared or unprepared food and/or beverages together with sufficient supporting services enabling immediate consumption. The supply of food and/or beverages is only one component of the overall service, where the service element predominates. Restaurant services are the provision of such services on the premises of the service provider, and catering services are the provision of such services at a location other than the premises of the service provider.
- (2) The supply of prepared or unprepared food and/or beverages with or without transport, but without other supporting services, is not considered a restaurant or catering service within the meaning of paragraph 1.