|Update:||Compliance Alert — Temporary VAT reduction to 6% for restaurant and catering services|
Intending to support restaurant and café owners during the economic breakdown of COVID-19, the federal government has approved a temporary VAT reduction of 6% until 30 September 2021.
The usual VAT rate of 12% in meals and 21% in alcoholic drinks in restaurants and catering services will be reduced to 6% from 8 May 2021. This is the date on which these establishments are planning to open again.
Note that alcoholic drinks will only be covered by the reduced VAT rate if they are consumed in the establishment.
A similar tax reduction occurred after the first lockdown from 8 June 2020 through 31 December 2020. However, at that time, alcoholic beverages were not covered by the reduced VAT rate, which will now be the case.