Definition
In the gastronomy industry, the reduced tax rate of 7% applies to takeaway food, while the standard rate of 19% applies to on-premises consumption.
Background & relevance for restaurant operators
Correct VAT rate assignment is essential for restaurant owners. Beverages are always subject to 19%, while food varies depending on the place of consumption. Modern POS systems automatically calculate VAT based on the order type (delivery, pickup, dine-in).