After almost three months of closure, the time has finally come, hospitality businesses will be allowed to reopen their doors as of Monday, June 8. The corona crisis has put the sector in dire straits. The coming weeks and months promise to be decisive for many businesses.
The federal government has therefore provided an additional package of support measures specifically for the hospitality sector on top of those already taken. One of the most important measures is the temporary VAT reduction for restaurant and catering services until the end of 2020. What this measure exactly means for the hotel and catering industry entrepreneur can be read below.
1.Meals and non-alcoholic beverages
The VAT rate on restaurant and catering services will be temporarily reduced from 12% to 6% and this from June 8, 2020 through December 31, 2020. Also certain drinks that are consumed on the spot (even without a meal) in a (beverage) establishment such as a café, brasserie, tavern, ... can benefit from the reduced VAT rate.
Specifically, the following VAT rates apply in the hospitality sector through the end of this year:
|Delivery (restaurant or catering service)||General rate||Temporary rate (08/06/2020 - 31/12/2020)|
|Non-alcoholic beverages (<= 1.2% vol)||21%||6%|
|Alcoholic beverages (> 1.2% vol)||21%||/|
|Beers with alcoholic strength by volume <= 0.5% vol.||21%||6%|
|Beers with alcoholic strength by volume > 0.5% vol.||21%||/|
As indicated, the rate applies both to meals and beverages consumed in one's own permanent or temporary physical catering establishment (brasserie, café, summer bar, pop-up restaurant, etc.) and to catering entrepreneurs who provide meals on the move, being the catering services.
The VAT rate on takeaway meals remains unchanged and was already 6%.
2.Implications for the GKS
In order to practically implement the VAT reduction, it is necessary for the users of the registered cash register to adjust the cash register programming as soon as possible. Each cash register has by default four VAT codes to which a specific rate is linked: A (21%), B (12%), C (6%) and D (0%). In order to correctly register the reduced VAT rate in the GKS, it is required to modify all items (= meals) to which code B (12%) was assigned to code C (6%). Also, a selection of beverages, specifically non-alcoholic beverages, should be assigned a different VAT code, code C (6%) instead of code A (21%).
If you are not sure how to change the VAT code of an article you should contact the supplier of the GKS. Changing the VAT codes yourself or using other articles to which a reduced VAT rate applies by default, such as take-away, is strongly discouraged.
The rate reduction provisionally ends on 31/12/2020. Therefore, don't forget to make the necessary changes in time to return to normal rates from 01/01/2021!
If you would like more information about this, please contact us at 051 26 82 68 or via email at firstname.lastname@example.org.