The government has put its VAT reform on takeaway and non-alcoholic drinks on hold

The restricted cabinet (kern) abandoned a series of measures on Friday that had been developed as part of its "consumption tax shift." This means there will be no doubling of the VAT on takeout and other delivered meals. However, the federal government also scrapped the planned reduction in the tax on non-alcoholic beverages. As a result, Arizona is set to receive €475 million in revenue.

On Friday, the Council of Ministers approved a draft Royal Decree "adapted to the advice of the Council of State" regarding the reform of certain VAT rates within the framework of the budget agreement. This legislation formalizes the rate increase from 12% to 21% for the delivery of pesticides and plant protection products in general, as well as the VAT hike from 6% to 12% for services involving the provision of furnished accommodation and camping pitches.

For the time being, packets of fries, hot waffles, takeaway sushi, delivered pizzas, and school canteen trays will therefore not see their prices automatically rise under the weight of the Arizona coalition. The policymakers' backpedaling on takeaway offers a brief moment of respite for certain players in the catering industry.

Unless, of course, a restaurateur decides to raise their prices in anticipation of the next budget conclave. Because this botched tax shift has been put on ice and could well be brought back out after the Carnival holidays, given that hundreds of millions of euros still need to be found for the 2026 fiscal year, even though the federal executive has abandoned the VAT reduction on non-alcoholic drinks from 21% to 12%.