Restaurants and Pubs taxed to death

One of the most beautiful taxes in Germany is certainly the sparkling wine tax. Introduced by the Reichstag in 1902 to finance the German war fleet, the tax has stubbornly survived all wars to this day for more then a hundred years. In the following wars, Germany completely sank the entire war fleet twice. The fleet is also in poor condition at the moment. So it's probably a good thing that we still have the tax.

The tax office currently charges 1.02 euros per bottle. Paid for by the producer but guaranteed to be passed on to the consumer. Together with the VAT, which also applies. Fortunately, if the restaurateur then sells the bottle, there is still sales tax.

The restaurateur better become a tax expert because there are a few more taxes!

In addition to sales tax and VAT, he is also allowed to support the country through trade tax, income/corporation tax and payroll tax. If the tax office hasn't managed to drive you nuts by now, there is also the licensing tax that applies to the sale of beer, wine and tobacco. If he owns the pub - lucky him -, he can then pay property tax.

Can there be a little more?

The tax office assumes that the restaurateur eats something in his restaurant. That's right - we mostly feed ourselves on what's left over - and so there is a benefit in kind - because we eat - that is taxed. But it is taxed at a flat rate because no one from the tax office wants to come over for every bite.

But that would be it. Or?

There are still a few costs that he has to pay. These are then called - not taxes but - expenses, duties or fees and are of course also properly taxed.

We would still have the costs of:

Electricity, water, gas, heating

Telephone, internet, postage

staff

Rent, lease

Insurance

Purchasing of goods

Maintenance contracts for technical equipment, maintenance, repairs

Credit card fees

Advertising

Interest payments

Tax advisor/lawyer

Software fees

GEMA (fee in Germany to show TV)

Operating costs such as cleaning laundry

accounting

Car costs and Insurances

Concession and permits

Contributions for Trade Unions and industry associations

When all of this is paid for, the restaurateur puts the entire profit - but really - everything - into his own pocket. Hopefully not too much! There is still the wealth tax!

Stephan Busch has an invaluable and diverse experience in the hospitality industry ranging from senior management positions with the most renowned hotel and resort companies to the project development - launch of operations, business development- for hotel and cruise companies in Asia, Europe, Canada and Russia.

His expertise includes not only planning, opening and operating  of hotels, international golf clubs, airports, resorts and cruise ships, but also successful  restructuring and repositioning of businesses during the financial crisis in Asia.

Stephan Busch earned his Master Certificate in Hospitality Management from Cornell University, USA and served many years as Academic Director / Faculty of Hospitality & Tourism at the State University for Humanities RGGU as well as the Swiss International University St. Petersburg / Lucern.