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Lower Saxony’s hospitality sector demands VAT cut by 2026 to fight competition

Struggling against rising competition, restaurants and cafés in Lower Saxony are betting on a tax break to survive. Will 2026 bring the relief they need?

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It is a picture of college images,in the first image there is a woman,in the second image there are...
It is a picture of college images,in the first image there is a woman,in the second image there are some snacks, in the third image image there is a man,in the fourth image there is restaurant name,in the fifth image there is a man and woman and some food in front of them, in sixth image there is some drink,in seventh image there is food,in the the last image there is a pizza.

Lower Saxony's Hospitality Industry Counts on Tax Cut from January - Lower Saxony’s hospitality sector demands VAT cut by 2026 to fight competition

The Hotel and Restaurant Association of Lower Saxony (Dehoga) is pushing for a VAT cut on food in the hospitality sector. Dirk Breuckmann, the newly elected president, has called for the tax reduction to start on January 1, 2026. He also wants greater political recognition for an industry facing tough competition from small business ideas like delivery services and supermarkets.

In September, the federal cabinet approved a plan to lower VAT on restaurant food from 19 percent to 7 percent. Dehoga argues that this change will help small businesses struggling against these ideas. The association insists the new rate must apply from January 1, 2026.

The VAT reduction is set to take effect in early 2026, provided no further obstacles arise. Small businesses in Lower Saxony and beyond will benefit from the lower tax rate on food. Meanwhile, state and federal officials continue discussions on how to offset the revenue loss.

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