German Draft Tax Amendment Act 2025 Includes Permanent 7% VAT Rate for Restaurants and Increased Support for Charitable Activities

The German Ministry of Finance has published the Draft Tax Amendment Act 2025. One of the main measures is a permanent reduction in the VAT rate on restaurant and catering services, excluding beverages, to 7% from 1 January 2026. Several measures are also proposed in relation to charitable activities, including an increase in the commercial activity exemption threshold for non-profits to EUR 5…
Continue Reading