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Saturday, 8 August 2026

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Restaurants pass on hardly any reduced VAT

A recent survey shows that most catering businesses are not passing on the reduction in the VAT rate on food to customers.

Restaurants pass on hardly any reduced VAT
Photo: Frank Vincentz · Wikimedia Commons · CC BY-SA 3.0

In January, a reduction in the VAT rate on food in the catering industry came into effect. This measure was intended to lower prices for restaurant visitors and strengthen the industry.

However, according to a new survey, most restaurants have not lowered their prices since then. The survey results demonstrate that extensive price stability in the catering sector persists, despite the existing tax relief.