Since it was first introduced in Germany 50 years ago, the VAT regulation presented several distinctions and factors that caterers need to bear in mind when it comes to correct taxation.
Normally, in restaurants, canteens and bars, where both table and self-service are involved, 19 per cent VAT always applies. Why? A relaxed ambience makes for a longer stay. The key here is service: guests in these establishments benefit from a range of services.
With Take Away and Home delivery, things get a little trickier. Caterers offering these kinds of services generally need to charge 7 percent VAT, except for so-called luxury items, for example caviar, lobster, and the like.
2020 - The New Normal Meets Hospitality
This year presented double the challenge to the market: Firstly, when calculating prices, caterers must make sure they comply with all tax rules that applicable in general.
In addition to that, it is essential that both the receipt and the daily final accounting show in detail, which products have been taxed with what percentage.
But on the other hand, hospitality is particularly affected by the pandemic. For this reason, the Federal Government has decided to grant a temporary reduction of the VAT for food in the catering industry, which means hospitality businesses have to keep an eye on these special regulations (and dates when they apply or stop applying) too!
Here is a summary of all the important information and dates:
- 1.7.2020 - 1.1.2021: 5 % VAT on food in hospitality
- 1.1.2021 - 30.6.2021: 7 % VAT on food in hospitality
- 1.7.2021 - 31.12.2021: to be decided, but possibly 19% in-house and 7% take-away
From January 2021 onwards, both the reduced and standard tax rates will be raised again. Nevertheless, the tax rate for consumption in-house and take away will then still be seven percent until 30.06.2021.
What does this mean for caterers? On the one hand, they must adjust their calculation. On the other hand, they need a POS system with which tax rates can be adjusted flexibly, easily and quickly so that the correct tax rates are always updated, without too much of an effort. In addition, it should be possible to choose between on-site orders and orders to go as quickly and easily as possible.
So, it is essential to work with the right POS solution and a trustworthy provider.
We can assure that with Zucchetti's POS solution, this and much more is no problem at all!
This may sound very complicated at first, but do not worry. We are informed about all innovations and regulations and keep track of everything. Our POS experts are happy to help and are always available. For consulting, new approaches to solutions or simply to give you an overview - get in touch with us!