Restaurateurs increase prices after returning to higher VAT - financial expert comments on the survey results.

Restaurateurs increase prices after returning to higher VAT - financial expert comments on the survey results.

According to a report by www.tagesspiegel.de Since the beginning of the year, 19 percent instead of 7 percent VAT has been charged when visiting a restaurant. Three quarters of restaurateurs in Germany have already increased their prices following the return to higher VAT on food. 75.7 percent had already done so, according to a survey published on Friday by the industry association Dehoga.

The VAT increase on food from 7 percent to 19 percent is already having a significant impact on the catering industry. The survey by the Dehoga industry association shows that 75.7 percent of restaurateurs have already increased their prices, and a further 11 percent are planning to do so during the first quarter. These price increases are primarily a response to the increased costs caused by the VAT increase. A third of restaurateurs expect to slip into the red this year, and only 33.0 percent expect to be able to hold their own on the market. These figures clearly show the financial impact of the VAT increase on the catering industry.

Dehoga describes the unequal taxation of restaurant food compared to supermarket food and food deliveries as “absurd”. This unequal treatment represents a further burden for the catering industry and could, in the long term, lead to some businesses no longer being able to operate economically.

Given these developments, it is important that the government and financial industry leaders take the financial challenges facing the hospitality industry seriously and potentially consider alternative solutions to provide relief to businesses. This is the only way to ensure the long-term economic stability and competitiveness of the catering industry.