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Financial expert warns of possible VAT increase for restaurateurs - focus on effects on prices and marketability
According to a report from www1.wdr.de, the reduction in VAT to seven percent during the Corona pandemic has relieved innkeeper Philip Winterkamp, but now he fears that this reduction will be reversed at the end of the year. For him this would mean that he would have to adjust his prices. The increase in VAT could cause food and drink prices in restaurants to rise, which in turn affects consumer spending. “Freischütz” guests have already expressed concerns that they may be able to afford fewer visits to restaurants. A possible increase in VAT could also affect the organization of private parties and...
Financial expert warns of possible VAT increase for restaurateurs - focus on effects on prices and marketability
According to a report by www1.wdr.de,
The reduction in VAT to seven percent during the corona pandemic relieved innkeeper Philip Winterkamp, but he now fears that this reduction will be reversed at the end of the year. For him this would mean that he would have to adjust his prices.
The increase in VAT could cause food and drink prices in restaurants to rise, which in turn affects consumer spending. “Freischütz” guests have already expressed concerns that they may be able to afford fewer visits to restaurants.
A possible increase in VAT could also affect the organization of private parties and weddings in the restaurant, as costs for guests would increase. This could lead to a decrease in such events and thus a loss of sales for the restaurant.
According to Winterkamp, the quality should not suffer despite the price increase, which means that any additional costs would have to be passed on to the consumer. This could lead to a decrease in restaurant visits as diners may not be able or willing to accept the price increase.
Overall, a possible increase in VAT could affect the business of “Freischütz” and other catering establishments, which could lead to financial challenges. This could have a long-term impact on the financial industry by affecting publican income streams and consumer spending.
Read the source article at www1.wdr.de