A study of more than 180,000 restaurant dishes found that Germany’s EUR 4 billion VAT cut delivered little benefit to consumers, with 91% of surveyed prices unchanged and only 1% reduced.
Germany’s restaurant sector received a EUR 4 billion tax reduction at the start of 2026 when the government permanently lowered value-added tax on restaurant meals from 19% to 7%.
A study by WMP Consult, ordered by the Food, Beverages and Catering Union (NGG), examined more than 180,000 dishes across 12,000 restaurants to measure the impact. The findings showed the tax savings rarely reached customers’ bills.
Among the dishes surveyed, 91% stayed at the same price, while 8% actually cost more. Only 1% of dishes became cheaper.
The union calculated that full tax relief passage could have reduced final prices by approximately 10%. Instead, restaurants largely pocketed the savings without adjusting what customers pay.
Guido Zeitler, NGG’s chief, said the tax cut delivered no benefits to either diners or workers. The union pushed for alternative measures, including wage increases and improved working conditions in restaurants, where labour remains a major cost driver.
The VAT reduction succeeded in shifting profits to restaurant operators but failed its stated objective of making dining more affordable for the German public.
