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Taxes on Restaurants (Restaurantsteuer) in Germany
(Taxes for Gastronomy Businesses in Germany)
Which taxes apply to a restaurant?
Although there is no official tax called “Restaurantsteuer”, restaurants in Germany are subject to several different types of taxes. The most important ones are:
| Type of tax | Applied? | Simple explanation |
|---|---|---|
| Sales tax / VAT (Umsatzsteuer / MwSt) | Yes | Charged on food and beverages sold to customers |
| Income tax or corporate tax (Einkommensteuer / Körperschaftsteuer) | Yes | Levied on the profits of the restaurant owner or the company that operates the restaurant |
| Trade tax (Gewerbesteuer) | Yes | Mandatory for any commercial activity; for individuals there is an allowance of 24,500 € |
| Payroll tax (Lohnsteuer) | Yes | Charged if the restaurant employs staff |
| Local tax on alcoholic beverages (in some cities) | Sometimes | Municipalities such as Berlin or Cologne may impose additional local taxes or fees on alcohol served in restaurants |
VAT (Umsatzsteuer) on food and drinks in restaurants
| Type of service | Tax rate | Notes |
|---|---|---|
| Consumption of food on the premises | 19 % | Considered a full service (seating, service, cleaning, etc.) |
| Take-away / delivery | 7 % | If it is merely the handing over or delivery of food without service (e.g. snack bar, pizza delivery, “to go” meals) |
| Alcoholic beverages | Always 19 % | Regardless of whether they are consumed on the premises or off-site |
| Non-alcoholic drinks / coffee | 7 % or 19 % | Depends on how they are offered: with full on-site service often 19 %, as pure take-away possibly 7 % |
Important note:
During the coronavirus crisis, the VAT rate on food served in restaurants was temporarily reduced to 7 %. As of 2024, the standard rate of 19 % applies again to food consumed inside restaurants.
Other taxes and charges restaurant owners must consider
| Tax / charge | Explanation |
|---|---|
| Trade tax (Gewerbesteuer) | Calculated on commercial profits, after an allowance of 24,500 € (for individuals and certain partnerships) |
| Payroll tax (Lohnsteuer) | Withheld on employee wages and salaries, together with mandatory social security contributions |
| Corporate tax (Körperschaftsteuer) | Applies if the restaurant is run as a corporation (e.g. GmbH or UG) instead of a sole proprietorship; the company’s profits are then subject to corporate tax rather than income tax |
| Local beverage tax (Getränkesteuer) | In some cities, additional local taxes may be levied on alcoholic drinks – restaurant owners should check with their municipality |
| Restaurant licence (Gaststättenerlaubnis) | Official licence required to operate a restaurant, especially when serving alcohol; fees can be one-off or recurring depending on the city |
Can restaurant expenses be deducted for tax purposes?
Yes. All operating expenses of the restaurant can generally be deducted as business expenses, for example:
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Rent for the restaurant premises
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Wages and salaries of employees
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Purchase of food and beverages
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Printing and design of menus and flyers
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Marketing and advertising costs
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Electricity, water and heating
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Kitchen and service equipment (ovens, refrigerators, dishwashers, tableware, furniture)
→ These costs are deducted from the restaurant’s revenues to determine the taxable profit.
Useful terms
| German term | Meaning in Arabic |
|---|---|
| Umsatzsteuer (MwSt) | ضريبة القيمة المضافة |
| Gewerbesteuer | ضريبة التجارة |
| Einkommensteuer | ضريبة الدخل |
| Körperschaftsteuer | ضريبة الشركات |
| Lohnsteuer | ضريبة الأجور |
| Gaststättenerlaubnis | رخصة تشغيل مطعم |
Summary
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Restaurants in Germany do not pay a separate “restaurant tax”, but they are subject to VAT, income or corporate tax, trade tax and payroll tax.
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For food consumed on the premises, the standard VAT rate of 19 % usually applies; for take-away or delivery, 7 % is generally applicable.
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All operating costs of the restaurant can be deducted as business expenses.
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In some cities, there may be additional local charges, for example on alcoholic beverages or for outdoor seating (Außengastronomie).
The editorial team of the website strives to provide accurate information based on thorough research and multiple sources. Nevertheless, errors may occur or certain details may be incomplete or not fully verified. Please treat the information in this article as an initial reference only and always consult the competent authorities or a professional tax adviser for binding and up-to-date guidance.
