Value added tax back on 19 percent !

Bad news for the food industry. The German government has now decided to raise VAT on food back to 19 percent, despite the successful petition previously signed by Dehoga.

During the coronavirus crisis, it was reduced to 7 percent. "This tax increase on food is a fatal mistake, it will lead to business closures, rising prices, falling sales and an enormous loss of jobs and quality of life in the catering industry, especially in rural regions," explains Angela Inselkammer, President of the Bavarian Hotel and Restaurant Association DEHOGA Bavaria"Such a decision is directed against hundreds of thousands of family-run small and medium-sized companies, millions of employees and millions and millions of guests."

DEHOGA Bayern Regional Managing Director Dr. Thomas Geppert adds: "The budget situation following the ruling of the Federal Constitutional Court is certainly difficult. We are all at the limits of our means. That's why we urgently need tax justice and relief. The hospitality industry is not a cow that can be milked endlessly."

The DEHOGA Federal Association had launched a petition to fight for the 7 percent VAT. The minimum target for submitting a petition had been reached. And yet: all efforts and all discussions were in vain, the "old" VAT is coming back.

Our expert

Thomas Schneidawind

Managing director, Contact person for Beans, capers, peppers, hot peppers and tomato products

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