Germany Announces Lower House Approval of Bill for Tax Amendment Act 2025

December 9, 2025, 5:00 AM UTC

The German Ministry of Finance Dec. 4 announced that the lower house of parliament (Bundestag) approved of a bill on Tax Amendment Act 2025. The bill includes measures to: 1) permanently reduce the VAT rate to 7 percent for restaurant and catering services, excluding beverages, from Jan. 1, 2026; and 2) increase the flat-rate commuter allowance to 0.38 euros (US$0.44) per kilometer, applicable from the first kilometer for all taxpayers, including service providers in rural areas. [Germany, Government Portal, 12/04/25]

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