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Increase in VAT rates expected as of 1 January 2023 (?)

To financially stabilize the old-age and survivors’ insurance (AHV), the Federal and Cantonal Council agreed on a reform of the AHV in their winter session of 2021 (AHV 21).

The heart of this reform is the gradual increase of the retirement age for women from 64 to 65 years as well as the additional financing of the AHV through an increase in VAT rates. The standard rate of 7.7% is to be raised by 0.4 percentage points to 8.1%, while the reduced VAT rate and the special rate for accommodation services are to be increased by 0.1 percentage points to 2.6% and 3.8% respectively.

Source EY

 

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