As of January 1st, VAT in the catering industry rose from seven to 19 percent. According to an industry survey, three out of four innkeepers have already raised their prices.
Prices in the catering industry are likely to rise significantly this year – and in some cases already have. Around 75 percent of restaurateurs in Germany have already increased their prices just two weeks after the return to higher VAT on food, according to a survey published today by the industry association Dehoga. Eleven percent of restaurateurs wanted to follow suit during the first quarter, and 6.2 percent wanted to do so over the course of the year.
“Work economically and competitive remain”
According to this, only around three percent of the innkeepers operating in this country do not want to increase their prices after the VAT increase. “Whether, when and how restaurateurs increase prices depends in particular on cost developments, the concept of the business, the guests and the location,” said Dehoga President Guido Zöllick. “The focus is on working economically and remaining competitive.”
At the end of December, the VAT on food, which was reduced as a result of the Corona crisis and rising energy prices due to the Russian attack on Ukraine, expired. Since then, 19 percent instead of seven percent has been charged for food eaten in a restaurant.
A lot of uncertainty in the industry
However, the increase was met with a lot of incomprehension in the industry: “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 continue to be taxed at seven percent.” said Dehoga President Zöllick. “This unequal treatment must finally be permanently eliminated.”
Many businesses fear that customers could now decline significantly: a third of the 2,900 innkeepers surveyed fear that they will slip into the red this year. Only 33 percent assume that they will be able to hold their own on the market. 33.7 percent dare not make a prediction.