Political figure Schwesig advocates for immediate decreases in the Value Added Tax (VAT) on catering services. - Reduction of Gastro-VAT urged by Süsig at a swift pace
German Gastronomy Minister Proposes Permanent VAT Reduction for Hospitality Industry
In a significant move for the hospitality sector, Manuela Schwesig, the German Gastronomy Minister, has announced plans to reduce the Value Added Tax (VAT) rate on food in the industry. The proposal was made during a meeting with the presidency of the German Hotel and Restaurant Association MV, which took place at Schlossgut Groß Schwansee in Northwest Mecklenburg.
According to Schwesig, the hospitality industry in Mecklenburg-Western Pomerania cannot withstand further burdens. As a tourism state, she believes that a reduction in the VAT rate could stimulate local businesses and make the region more attractive to tourists. The intended VAT rate reduction is from the current 19% to 7%.
Schwesig has demanded swift implementation of this VAT reduction by legislation. She also announced that Mecklenburg-Western Pomerania will not implement municipal packaging taxes, which could further burden the hospitality sector.
The proposed reduction in the VAT rate is aimed at increasing the competitiveness of the hospitality sector. If passed, it could have a positive impact on Mecklenburg-Western Pomerania as a tourism state.
However, as of August 2025, there have been no publicly reported changes or proposals concerning a VAT reduction on food in the hospitality industry in Germany. In the past, Germany temporarily reduced VAT on food and hospitality during the COVID-19 pandemic but returned to the standard rate afterward. Any new proposals to reduce VAT would likely be debated at the federal level and could impact tourism states like Mecklenburg-Western Pomerania.
For definitive and updated information, checking German federal government announcements or the Federal Ministry of Finance’s latest policy statements regarding VAT on hospitality would be necessary. The federal government parties are planning a permanent reduction of the VAT on food in the hospitality industry, but the current status of this proposal remains to be seen.
- The proposed VAT reduction on food in the hospitality industry, as suggested by Manuela Schwesig, is not limited to Mecklenburg-Western Pomerania; it may influence other industries, particularly those in the retail, finance, and business sectors, as it aims to enhance the competitiveness of the industry.
- The German Gastronomy Minister's proposal for a VAT reduction on food in the hospitality industry aligns with the existing policy-and-legislation framework governing similar sectors like the finance and business industries.
- The hospitality industry's current VAT rate being discussed in politics has garnered attention beyond local news, with international industries, including those in the retail sector, watching closely for updates on this potential policy change.
- If the VAT reduction on food in the hospitality industry is passed at the federal level, it could have significant implications for not only politics but also general news, potentially reshaping the tourism landscape in Germany and other countries with similar hospitality sectors.