With the 2025 Tax Amendment Act, the legislature has made a decision that will have a noticeable impact on many businesses in the catering industry:
From January 1, 2026, the reduced VAT rate of 7% will permanently apply to food provided as part of restaurant and catering services. Beverages will continue to be taxed at 19%.
After several temporary regulations in recent years, this decision provides a reliable basis for the first time. At the same time, it means that many companies will have to review and adapt existing processes – especially in billing and point-of-sale systems.
This article shows what exactly is changing and what matters in practice.
What will change specifically from 2026 onwards?
The most important change can be summarized quickly:
In the future, the reduced tax rate of 7% will apply uniformly to food – regardless of how the service is provided.
Specifically, this means:
- It no longer makes a difference whether food is eaten on site or taken away.
- Whether served by staff or self-service no longer matters.
- The method of serving (dishes, disposable packaging, buffet) is also irrelevant.
This eliminates one of the biggest sources of error in recent years: the distinction between restaurant service and takeaway sales.
The treatment of beverages, however, remains unchanged. These continue to be subject to the standard VAT rate of 19% – even when offered together with food.
Why the regulation is now permanent
The current new regulation is not a completely new development, but rather builds upon the special regulations introduced during the coronavirus pandemic.
A reduced VAT rate of 7% on food was in place between 2020 and the end of 2023 to provide short-term relief to the restaurant industry. However, with the return to the regular VAT rate of 19% at the beginning of 2024, it quickly became apparent that many businesses continued to face significant economic pressure.
The permanent reduction that has now been decided is intended to address precisely this issue: less short-term relief, more long-term planning security.
Who the change is relevant for
The regulation affects almost all businesses that offer food as part of a catering service. This includes, among others:
- Restaurants, cafes and bistros
- Snack bars and food trucks
- Caterers and party services
- Canteens and cafeterias
- Bakeries and butcher shops with on-site dining
Companies that exclusively sell beverages are not affected – the tax rate remains completely at 19%.
A key point: The timing of the performance
Particularly important in practice – and often a source of error – is the correct timing for applying the tax rate.
What matters is not the invoice date or the date of payment, but the date the service is provided.
This means that
food delivered from January 1, 2026 onwards will be subject to a tax rate of 7% – regardless of when it is paid for or invoiced.
Especially around the turn of the year, particular care is required to avoid incorrect tax applications.
What actually changes in everyday life
At first glance, the regulation appears to be a simple tax cut. In practice, however, it involves more than that.
Many businesses benefit primarily from the elimination of the previously complicated distinction between different types of services. This reduces potential errors, simplifies employee training, and ensures clearer processes in day-to-day operations.
At the same time, however, there is a need for adaptation, especially in existing systems and processes.
What companies should specifically prepare now
The transition to 2026 should not take place at the turn of the year, but should be planned well in advance.
Point-of-sale systems and inventory management systems must be configured to correctly record food and beverages with their respective tax rates. In many cases, this requires an update or adjustment.
Even with invoices and receipts, a clear separation of tax rates remains crucial. Especially with combination offers or menus, it must continue to be clearly itemized which portion is for food and which is for beverages.
Last but not least, it’s worth taking a look at your own pricing. The tax cut opens up new possibilities – whether these are used to pass them on to customers or to stabilize your own profit margin is a business decision.
Conclusion
The permanent reduction of the VAT rate to 7% for food brings two main things for the catering industry: relief and simplification.
Less complex day-to-day operations and greater planning certainty are clear advantages. At the same time, companies shouldn’t underestimate the transition. Those who adapt their point-of-sale systems, processes, and billing in a timely manner avoid unnecessary errors and ensure a smooth start to 2026.
