How high is restaurant VAT in Germany in 2026?

Since 1 January 2026, a permanent 7% VAT applies to food in hospitality — whether eaten in, taken away, or delivered. Drinks generally stay at 19%, with exceptions such as milk and tap water.

Does the 7% also apply to drinks?

No. Drinks are still taxed at 19%. Exceptions are certain milk and milk-mixed drinks with a high milk content, and tap water. For the till this means food and drinks must be shown separately.

How do I treat combo deals like a meal with a drink?

For combo deals of food and drink you must split the price across the two rates — 7% on the food, 19% on the drink. There are permissible splitting methods; what matters is that the split is traceable and stored in the till system.

Do small businesses benefit from the reduction?

Small businesses under §19 UStG don't show VAT anyway, so the reduction doesn't change their invoice directly. It only becomes relevant once the small-business threshold is exceeded and they switch to standard taxation.

Restaurant VAT 2026 in Germany: 7% on Food

After the back-and-forth of recent years, it’s finally settled permanently from 2026: food in hospitality is taxed at 7% VAT again. For restaurants, cafés and takeaways this is real relief — but only if the till, menu and combo deals are switched over cleanly. This guide shows what now applies.

In short: Since 1 Jan 2026, a permanent 7% VAT applies to food — whether eaten in, to go, or delivered. Drinks stay at 19% (except milk drinks with high milk content and tap water). You must split combo deals across both rates. Till, fiscal device (TSE) and menu must reflect the separation.

What changed

VAT on restaurant food was a rollercoaster: 7% during the pandemic, back to 19% from January 2024, and since 1 January 2026 now a permanent 7%. This puts hospitality on a par with reduced-rate groceries again.

The reduction applies to all food, regardless of where it’s eaten:

eaten in → 7%
taken away → 7%
delivered → 7%

What stays at 19%

Drinks are the key exception: they generally stay at 19%. Only a few drinks are reduced:

Milk and milk-mixed drinks with a high milk content
Tap water

For your till this means food and drinks must be shown separately at the correct rate each.

The sticking point: combo deals

A meal with a drink, the breakfast deal, the “burger + cola” combo: here 7% and 19% meet. You must split the total price:

the food portion → 7%
the drink portion → 19%

There are permissible splitting methods (e.g. by individual sale prices). What matters is that the split is documented traceably and stored in the till — otherwise you risk back-claims at a tax audit.

Worked example

Café owner Marek sells a breakfast deal for €15.00 gross: food with an individual price of €12, coffee with an individual price of €3.

Food portion: 12/15 → €12.00 gross, of which 7% VAT = €0.78
Drink portion: 3/15 → €3.00 gross, of which 19% VAT = €0.48
Total VAT: €1.26 instead of €2.39 at a flat 19%

At the same sale price, Marek’s margin rises — or he can lower the price and stay competitive.

What you need to switch now

Till system & TSE configured for the separate rates.
Product master data checked: every food item at 7%, drinks at 19%.
Combo deals stored with a documented split.
Menu and receipts checked for correct disclosure.

How to handle your VAT return and input VAT in general is in VAT for freelancers. If you’re realising you’re slipping over the small-business threshold, this is especially relevant now.

Common mistakes

Booking drinks at 7%. They stay at 19% — an expensive standard error.
Not splitting combo deals. Without documentation, there’s trouble at an audit.
Not updating the TSE. The separation must run cleanly technically.
Forgetting input VAT. Your incoming invoices still reduce your VAT liability.

How Restio helps

The switch is more bookkeeping than tax law — but errors only surface years later at an audit. Restio helps you stay clean:

Read receipts — photograph incoming and outgoing receipts; Restio assigns food and drinks to the correct rate.
Instant answers — ask in English or German: “Which rate do I book my breakfast deal at?” or “Does 7% also apply to deliveries?”
Financial Guardian — you get a heads-up when your turnover heads toward the small-business threshold or a VAT-return deadline.

For correct till and TSE setup, your tax advisor or till provider helps — Restio makes sure you understand the logic behind it.

The 7% is real relief — but only for those who separate food and drinks cleanly. Owners who set up the till and combo deals correctly take the benefit in full. The official framework is explained by the IHK on the VAT reduction in hospitality.