Government urges immediate decrease in VAT for the food service industry
Christoph Ploß, Coordinator of the Federal Government for Maritime Economy and Tourism, has called on the federal states to quickly agree on a Value Added Tax (VAT) reduction for the catering industry. The appeal comes as the sector is currently under significant pressure, with many businesses struggling to cope with revenue losses.
Ploß, a member of the CDU, emphasised that the federal states also negotiated the coalition agreement, implying their involvement in the decision-making process. He highlighted the necessity of the VAT reduction measure, stating that it is not a political whim but a necessity for the industry's survival.
The government coalition has planned to reduce the VAT on food from 19 to 7 percent, effective January 1. This reduction is intended to provide relief to the catering industry, particularly in light of the challenges posed by the ongoing pandemic.
Thomas Geppert, head of the Hotel and Restaurant Association of Bavaria (Dehoga), supports this measure. He believes the VAT reduction is urgently necessary due to the soaring costs in the catering industry. Geppert stated that many businesses cannot pass on prices to customers as needed, leading to decreasing margins, exhausted reserves, and decreased turnover.
Industry representatives and politicians are emphasising the urgency of the VAT reduction measure. Ploß pointed out that many takeovers in the catering industry have failed due to bureaucracy. He explained that suitable solutions have been identified, such as the Practical Check for New and Successor Foundations, to support successors with offers like low-interest KfW loan offers.
Ploß appealed to the federal states to work together on the VAT reduction issue. According to Mediengruppe Bayern, Ploß stated that the VAT reduction must be brought onto the agenda in the next few weeks. The VAT reduction on food is considered extremely important for the tourism industry and catering businesses.
However, the search results do not contain specific information regarding which federal states in Germany currently refuse support for a VAT reduction in the catering industry. Despite this, the call for immediate action on the VAT reduction issue continues to gain momentum.
