Optimization of VAT in the Gastronomy Sector

VAT in the gastronomy sector presents many entrepreneurs with challenges, especially when it comes to distinguishing between the standard and reduced tax rates for food and beverages. Current legal regulations, as well as changes up to special cases such as vouchers, impact the tax situation in this area.

Reduced Tax Rate for Food from 2026

With the establishment of a permanently reduced VAT rate of 7% for the provision of food from January 1, 2026, the question of the correct tax rate for gastronomic services has been simplified. Previously, a distinction had to be made between pure food deliveries and other services to apply the appropriate tax. This distinction is now eliminated thanks to the clear regulation for food.

Important to note: Beverages such as cola, lemonade, and alcoholic drinks are always subject to the standard tax rate of 19%. Only in certain exceptions, such as milk or milk-based drinks, can the reduced tax rate apply.

Reduction of VAT Rates for Gastronomy

The COVID-19 pandemic led to temporary measures to support the gastronomy sector. During the period from July 1, 2020, to December 31, 2020, the tax rate for restaurant and catering services was reduced to 5%. From January 1, 2021, to December 31, 2023, a tax rate of 7% applied. With the beginning of the year 2026, the VAT for food is consistently set at 7%.

Note: For combination offers of food and beverages, a portion of 30% for beverages can be deducted from the total price.

The Legal Situation Until 2025

Until the year 2025, taxation in the gastronomy sector was based on the distinction between deliveries of food and other services. This division was crucial for applying the correct tax rate. Since 2026, this distinction is no longer necessary, as food is always taxed at 7%.

Distinction Between Food and Beverage Provision

The new VAT regulation applies exclusively to the provision of food, not to beverages. It is important to evaluate each food or beverage separately and apply the correct tax rate accordingly.

Note: Even with combination offers, the services must be listed with the different tax rates to ensure tax accuracy.

Temporal Allocation of Tax Rates

The execution of the respective service is crucial for the allocation of the appropriate tax rate. Various factors must be considered to correctly perform the input tax deduction.

Distinction Between Delivery and Other Service

- Deliveries: Refer to transactions involving goods and are defined for VAT purposes.

- Other Service: Includes services where the goods component is minimal.

Special Cases in VAT

For advance payments, continuous services, and vouchers, there are special tax regulations that must be given particular attention in the gastronomy sector.

In the complex world of VAT in the gastronomy sector, comprehensive advice from tax experts is indispensable to minimize tax risks and ensure optimal tax planning.