Restaurants and cafes: Guests need to pay extra because of increased VAT | EUROtoday

As of: 10:37 a.m | Reading time: 2 minutes

NAfter the return of VAT to 19 p.c within the catering business, corporations have elevated their costs, in accordance with the Dehoga business affiliation. “The significantly increased costs for food and personnel left them no other choice,” mentioned an affiliation spokeswoman, referring to the adjustments because the starting of the 12 months. “After three years of Corona with historic sales losses, such cost increases cannot be absorbed.”

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For meals in eating places or cafés, the speed was briefly lowered from 19 to 7 p.c in the course of the corona pandemic to ease the burden on the business. This exemption was prolonged a number of instances because of the power disaster, most lately till the tip of 2023. For drinks it remained at 19 p.c.

“Guests come less often, they consume less”

The tax improve will hit small and medium-sized household companies significantly laborious, particularly in rural areas. “Many of our establishments report a growing price sensitivity and a reluctance to consume among guests,” mentioned the Dehoga spokeswoman. “Guests come less often, they consume less and forego the starter or dessert.” However, there are additionally many friends who stay loyal to the companies. “Meeting with friends in the pub and eating in the restaurant as a break from everyday life is still very important to them.”

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Sales rose by 0.8 p.c in January in comparison with the earlier month of December, adjusted for value will increase (in actual phrases), because the Federal Statistical Office lately introduced. However, together with value will increase (nominal), income fell by 0.5 p.c.

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Dehoga additionally calls for that meals be taxed uniformly at seven p.c. “It is absurd that 19 percent VAT applies to food in restaurants again, while food to go, ready-made salad from the supermarket and food delivery are still taxed at 7 percent,” emphasised the spokeswoman.