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When does 7% and when does 19% VAT apply in the catering industry? The complete overview

Posted on: 01/17/2025

Translation:

VAT in the Hospitality Industry: 7% or 19%? A Clear Overview

The value-added tax (VAT) in the hospitality industry is a topic that confuses many restaurateurs. When does the reduced rate of 7% apply, and when does the standard rate of 19% kick in? In this article, we'll clarify all the important questions surrounding VAT in the hospitality sector.

When Does the 7% VAT Apply?

  • Takeaway Food: Whether it's a burger, pizza, or salad, if the customer takes the food away, the reduced VAT rate of 7% generally applies.
  • Food for Off-Premises Consumption: This also includes food delivered or consumed at takeaways without seating areas. The VAT rate here is 7%.
  • Beverages: Beverages are typically subject to the standard VAT rate of 19%, regardless of whether they are consumed on-premises or taken away.

When Does the 19% VAT Apply?

  • Food Consumed on-Premises: If a customer sits down in a restaurant or bar and consumes food there, the standard VAT rate of 19% applies.

Important Exceptions:

There are some exceptions and special rules that can affect VAT calculations in the hospitality industry. These include mixed deliveries or the sale of food in conjunction with other services.

Why Is This Distinction So Important?

Correctly calculating VAT is essential for restaurateurs. Incorrectly stating the VAT rate can lead to unpleasant surprises during tax returns.

Conclusion:

VAT in the hospitality industry can be complex, but with the right information, it's easy to understand. By clearly distinguishing between takeaway food and food consumed on-premises, restaurateurs can accurately calculate VAT and simplify their bookkeeping.

Posted in: Finances & Operations

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