VAT on food and drink (foodstuffs)
Food in the hospitality sector is subject to the low VAT rate of 9% in most cases. This is designed to keep the price of basic necessities affordable. Whether a customer eats his meal in your restaurant or picks up the dish makes no difference: both fall under the low rate, as long as it concerns food or non-alcoholic beverages. It is important that you properly distinguish in your records between turnover under 9% and turnover under 21%. This is the only way to avoid errors in your tax return.
VAT rates in the hospitality industry
In the hospitality industry, there are two relevant VAT rates: the low rate of 9% and the high rate of 21%. The 9% rate applies to most food and non-alcoholic beverages, while the 21% rate applies to alcoholic beverages and other services not directly related to food. Below is an overview for each category.
What falls under 9% (low tariff)
The low rate applies to most primary foods and prepared meals. Some key examples:
Goods / Services | VAT rate |
Bread | 9% |
Vegetables | 9% |
Fruit | 9% |
Meat | 9% |
Cuisine (meals) | 9% |
Coffee / tea | 9% |
Soft drinks (non-alcoholic) | 9% |
Alcohol-free beers (< 0.5% alc.) | 9% |
Candy & chewing gum | 9% |
Chocolate | 9% |
Ice cream (as consumption) | 9% |
Accommodation | 9% (until 2026) |
What falls under 21% (High rate)
The high rate of 21% applies to alcoholic beverages and non-food products. Examples include:
Goods / Services | VAT rate |
Beers (normal) | 21% |
Wines | 21% |
Spirits | 21% |
Room hire (without accommodation) | 21% |
Non-food items (souvenirs, merchandise) | 21% |
Stimulants (tobacco, e-cigarettes) | 21% |
Overnight stays
For overnight stays in hotels, B&Bs and guesthouses currently apply the low rate of 9%. This rate applies to accommodation including breakfast if it is part of the package. However, from 2026, this rate will be increased to 21%. It is therefore important to prepare your pricing and reservation systems for this in good time.
Arrangements
A package is a combination of different services, such as dinner with an overnight stay or an all-in package. For each item, you need to apply the correct VAT rate. Food and non-alcoholic drinks fall under 9%, while alcohol and certain services fall under 21%. So you cannot book the whole package under one rate, but have to split the turnover.
Vouchers
At vouchers the Inland Revenue distinguishes between single purpose and multi purpose. A single purpose voucher (e.g. a dinner voucher) is directly linked to a fixed rate. You already have to pay the VAT at the time of sale. With a multi purpose voucher (which can be redeemed for different products with different rates), you only pay the VAT at the time of redemption.
VAT on alcohol
Alcoholic drinks are always subject to the high rate of 21%. This covers all drinks with an alcohol content, such as beer, wine, spirits and cocktails. Even if a drink consists mostly of soft drinks but contains a dash of alcohol, the high rate applies. Only non-alcoholic variants, such as 0.0% beer, fall under 9%.
VAT in hospitality sector deductible?
For entrepreneurs themselves, VAT on catering expenses is in principle not deductible. A business dinner or a staff party in a restaurant is regarded as consumption on site and therefore falls under the category of entertainment expenses. You cannot reclaim the VAT on these. Only when you charge the costs to a customer as part of your service, you may deduct the VAT. For a detailed explanation, you can read further in our article: Is food and drink business deductible?
What should you pay attention to?
As a hospitality entrepreneur, there are a few things you need to be extra alert to. By arranging these properly, you will avoid mistakes and unnecessary discussions with the tax authorities.
- Receipts and invoices: Always state the correct VAT rate on receipts and invoices. This way you keep things clear and avoid problems afterwards.
- Takeaway or on-site dining: Pay close attention to the difference in tariff. For some products, it matters whether the customer takes it with him or eats it in your shop.
- VAT return: Make sure your records are clearly broken down by VAT rate. This will make your return easier and reduce the risk of errors.
VAT rates 2026: what will change?
The most important change by 2026 is that overnight stays in hotels, guesthouses and B&Bs no longer fall under 9%, but under 21%. Campsites remain exempt and retain the low rate. This change requires timely preparation. Reservations for 2026 must be taxed at 21% from the time of booking, even if payment is made in 2025. Rates for food, non-alcoholic beverages and alcohol will remain unchanged.
Frequently Asked Questions
How much VAT on food?
Food and non-alcoholic drinks are covered by the 9% VAT rate. This is different when a luxury product is involved.
VAT on drinks?
Non-alcoholic drinks such as coffee, tea and soft drinks are covered by the 9% VAT rate. Alcoholic beverages, on the other hand, fall under the 21% VAT.
VAT on beer?
Beer and other alcoholic beverages are taxed in the Netherlands at 21% VAT.
Do I have to charge VAT on tips?
Tips can be received in two ways and this determines whether VAT should be charged on them:
- No VAT: Tips given directly to staff (in cash or via a personal payment app) are not subject to VAT. This is considered a gift and not turnover.
- Well btw: Tips that come in via cash register or pin payment and are then distributed to staff by the employer count as turnover and are subject to VAT. The VAT rate depends on the main activity of the catering business (usually 9% or 21%).
