Catering from 2026: 7% on food, 19% on beverages

New VAT rates from 2026 – what applies to food and drink?

As of 1 January 2026, food in the catering sector will again be subject to the reduced VAT rate of 7 percent. Beverages will remain at the standard rate of 19 percent. This difference applies regardless of the type of business and, alongside traditional restaurants, also affects canteens, food trucks, delivery services and event and institutional catering. The decisive factor is always the specific nature of the service provided and its classification for VAT purposes.

Timing and implementation – when do businesses need to act?

The Bundesrat, the upper house of parliament, approved the change in the law on 19 December 2025. Businesses should start their preparations now. Menus, price calculations, cash register systems and bookkeeping processes have to be updated on time. Making changes at short notice at the turn of the year harbors considerable risk, particularly to continuing business and events.

The turn of the year – determining the date of services at New Year

The turn of the year requires particular attention. Services provided by 24:00 on 31 December 2025 are still subject to the old tax rate. The new tax rate applies from 0:00 on 1 January 2026. It should be carefully checked at New Year’s events, buffets or events extending over several hours when the service was provided. Errors in determining the time may lead to additional tax. 

Vouchers – particular risk during the transition

Vouchers represent a heightened source of risk during the transition period. For single-purpose vouchers, the VAT is already charged when they are issued – so the tax rate is that of the date of sale. Subsequent adjustments are generally not necessary. Only in the case of an additional payment is the difference taxed at the tax rate applicable at that time (e.g. 7 percent). Multi‑purpose vouchers, by contrast, are subject to VAT only upon redemption, requiring application of the tax rate valid at that time. Mixed vouchers - for example, those covering a “dinner including a drink”- necessitate a clear and accurate allocation of VAT between the respective components. Businesses should check their voucher models and ensure that the corresponding tax classification is properly documented.

Canteens, catering and event gastronomy – pay attention to particularities

Canteens, industrial kitchens and catering businesses are also affected by the new regulations. Depending on the type of service, the customer group and the contractual arrangements, different VAT implications may arise. Long-term contracts and flat-rate agreements should be checked in particular whether adjustment clauses are necessary and how the tax changes should be correctly reflected.

Summary

This change to VAT starting from 2026 requires careful preparation in the catering and food service sectors. Conducting an early review of pricing, cash register systems, vouchers and contractual agreements helps mitigate risks and ensures a smooth implementation. We will be glad to support you with assessing your individual situation and in practically implementing the new requirements. We’re looking forward to hearing from you!