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Schleswig-Holstein pushes VAT cut to rescue struggling German restaurants

A bold tax reform could be a lifeline for Germany’s restaurants. With inflation and falling customers, will this 12% VAT cut save the industry?

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This picture is clicked inside the hotel and in front, we see a table on which white color cloth is...
This picture is clicked inside the hotel and in front, we see a table on which white color cloth is placed. On table, we see plates, fork, spoon, glass, branches of tree. Around the table, we see chairs and behind that we see the other table which is like green in color and behind that, we see a man wearing black blazer. Next to him, we see the girl standing and behind them, we see door on which exit is written on it and behind that door, we see two men standing.

Gastronomy Under Pressure - Vogt Seeks Relief for Businesses - Schleswig-Holstein pushes VAT cut to rescue struggling German restaurants

Politicians in Schleswig-Holstein are calling for urgent financial support for the struggling hospitality sector. Christopher Vogt, leader of the Free Democratic Party (FDP) in the state parliament, has proposed a sharp cut in value-added tax (VAT) to ease pressure on restaurants. The move has gained cross-party backing ahead of a key vote in the Bundesrat next month.

Vogt is pushing for the VAT rate on restaurant meals, including takeaway food, to drop from 19% to 7%. He argues that many restaurateurs are battling rising costs, shrinking customer spending, and excessive bureaucracy. His proposal aims to simplify tax rules while giving businesses much-needed relief.

The proposed VAT reduction would lower costs for restaurants and takeaway services across Germany. If approved, the change could help stabilise an industry under pressure from inflation and falling customer numbers. The outcome of the Bundesrat vote will determine whether the measure moves forward.

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