Restaurant goers brace for higher VAT bills
Prepare for a price hike in your dining experiences, as the German government has decided to raise VAT on food served at restaurants to 19%. Before you reach for your wallets, take a deep breath and grab a seat. Let's dive into the details.
The Traffic Light Coalition, consisting of the Social Democrats, the Greens, and the Free Democrats, has agreed to implement this change at the start of the year. Previously, during the coronavirus crisis, the tax rate for food in restaurants and cafés was temporarily reduced from 19% to 7%, offering some relief to the gastronomy industry.
Despite calls from the sector to continue this tax cut, the new federal government seems unwilling to comply. Beginning in the new year, takeaway, supermarket, and delivery food will continue to be taxed at 7%. This means that those who opt for dining out will be the ones bearing the brunt of the price increase.
The exact impact on your wallets remains to be seen, but it's safe to assume that dining out could be a tad pricier in 2023. The industry had been advocating for an extension of the tax cut, fearing that families and businesses might opt for takeout or delivery instead.
In light of this news, some may shift their dining habits to save a few euros. Keep your options open, and perhaps consider exploring alternative dining experiences subsequently.
Insight: The CDU's 15-point plan includes reducing VAT on restaurant food to 7%, offering a potential lifeline to the struggling gastronomy sector. While this isn't the current scenario, it's worth noting that there might be changes in parliamentary elections.
In summary, it seems that dining out will become a more costly indulgence. While we can't predict the exact figures, we can certainly prepare for a hike in VAT. Happy dining (or budgeting)!
