2023-08-04 17:17:17
Due to the reduced value added tax in gastronomy since the Corona pandemic, the German state loses around 3.4 billion euros in revenue per year. This was announced by the Ministry of Finance on Friday in Berlin. For weeks, the catering industry has been demanding that the reduction, which was limited until the end of the year, be maintained permanently. Whether this will happen is an open question. In Austria, the reduced tax expired at the end of 2021.
A spokesman for the German Ministry of Finance pointed out on Friday that the reduction was a temporary “crisis prevention measure”. An extension must be decided in the parliamentary procedure. A decision on this could only be made “in the light of the tax estimate in November”.
The tax relief applies to meals in restaurants and catering services, but not to the sale of beverages. The sales tax was initially reduced from 19 to 7 percent in 2020 due to the Corona crisis. Against the background of the Ukraine war and the sharp rise in energy prices, the reduction was then extended again until the end of 2023.
At the beginning of July, the German restaurant and hotel association Dehoga warned of a “disaster with fatal consequences for businesses” if the reduction were not maintained.
The reduced VAT rate for gastronomy and hotels in Austria, on the other hand, expired at the end of 2021. The reduction from 10 to 5 percent for drinks, food and overnight stays was not extended even then. Gastronomy and hotel industry representatives had previously vehemently – and in vain – insisted on an extension.
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