Swiss VAT rates will change. The respective vote has just taken place on 25 September. The rate raise will be in favour of the Swiss pension system (old-age and survivor’s insurance reform financing resp. “AHV”).
The rates will raise as following:
- Standard rate: 7.7% -> 8.1%
- Reduced rate: 2.5% -> 2.6%
- Special reduced rate for hotel accommodation: 3.7% -> 3.8%
The competent authority (not Swiss Federal Tax Administration, SFTA; which is responsible for Swiss VAT) will now have to decide as per when the VAT rate change will enter into force. Possible resp. expected are 01.01.2023 (very short notice) or 01.01.2024 (reasonable notice period).
Further information on practical aspects on a VAT rate change can be found in the publication issued by SFTA in this link, available in German, French and Italian, but not in English.
We either expect that the principles set out in this publications will be applied in the upcoming VAT rate change as well or that SFTA will update and publish an amended version.
UPDATE > The Swiss Federal Council decided on 09.12.2022 that the VAT rate change enters into force on 01.01.2024. This is the date that previously had been expected already.
Contribution by
Christoph M. Meier
lic. oec. publ. / Mehrwertsteuer-Experte FH
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