The sales tax for Food (excluding drinks) in the catering sector was reduced to the reduced VAT rate of 7% for a limited period until 31.12.2023 during the coronavirus pandemic. From 1.1.2024 until 31.12.2025, the uniform tax rate of 19% applied to food and beverages. As a result of the Tax Amendment Act 2025, from 2026 the VAT rate for Food (excluding drinks) is reduced again to 7%. As the reduced tax rate only applies to food, but not to drinks

• the guest eats all meals with 7% and
• consumes the drinks with 19% VAT.

What the guest consumes must be shown separately in the hospitality receipts according to tax rates. This separation is generally not possible if the catering business offers a combination of food and drink, such as a brunch, buffet or all-inclusive offer. The tax authorities allow a flat-rate allocation according to which the portion of the charge attributable to the beverages 30% of the all-inclusive price can be applied. With a All-inclusive price For overnight stays with breakfast, the portion of the fee to be charged at 19% can be charged at 15% of the flat rate as a service flat rate or as a business package.

Practical example:
A restaurant offers a Sunday brunch that costs €44.00 per person including drinks. With this offer, the restaurant owner cannot determine how much food the respective participant consumes and which and how many drinks they consume.

Solution: The restaurant owner can increase the beverage portion with 30% of the all-inclusive price to be applied. This is € 44.00 x 30% = € 13.20. This means that for the period from 1.1.2026, the

• Meals € 28.79 net + € 2.01 sales tax = € 30.80 gross
• Drinks € 11.09 net + € 2.11 VAT = € 13.20 gross

Consequence: Whenever the proportions of food and beverages cannot be separated when selling at a total price, the beverage proportion can be recognized at a flat rate of 30%.

Restaurant and catering services in the night from 31.12.2025 to 1.1. 2026: In order to avoid transitional difficulties not objected to, that restaurant and catering services provided in the Night from 31.12.2025 to 1.1.2026 the one that is valid until 31.12.2025. Standard tax rate of 19% is applied.