Vat Rate Re-instatement for Restaurant and Catering Services
While countries globally are now sensing greater security from the effects of the pandemic, the adjustment process pertaining to fiscal stability, however, has been slow to come for some EU Member States. While the overall objective will have been to restore an economic stability that mirrors pre-pandemic norms, this is only now becoming more discernible in the fiscal measures that countries deploy.
From 1 January 2024, Germany will raise the VAT rate on restaurant and catering services back to its original standard rate of 19%, up from the temporary rate of 7%, in a bid to obtain parity with pre-pandemic fiscal measures.
Germany is a compliant territory for Kofax. Kofax’s e-invoicing solution supports all valid VAT rates in the country, including both the 7% and 19% VAT rates which are currently effective in the country.
The German government has also released some significant updates regarding its anticipated e-invoicing mandate, particularly relating to its schedule for e-invoicing implementation. You can read more about this here.