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Germany slashes VAT on restaurant meals

Germany has reduced the VAT on restaurant meals by more than half to help struggling businesses recoup losses caused by the coronavirus.

The country’s parliament voted yesterday to slash the tax from 19% to 7% for the next year.

As in the UK, the hospitality trade has been among the worst-hit of all sectors of the economy by the restrictions that were imposed in March to help prevent the spread of the disease.

Restaurants have re-opened to eat-in guests, though rules requiring a minimum distance between tables continue to weigh on profits in the sector.

Finance Minister Olaf Scholz’s Social Democrats have promised to further support the sector in an impending economic stimulus package.

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