Switzerland Plans VAT Increase to 8.8% by 2026 to Support Pension Finances

• Swiss Federal Council plans to raise VAT rate to 8.8% by 2026
• Increase in VAT rate will fund an extra pension payment and support pension finances
• Approved by Swiss Cabinet on October 16
• Expected to bring in an additional CHF 4.2 billion until 2030
• Earlier VAT increase from 7.7% to 8.1% to close pension funding gaps
• Special rate for accommodation sector to increase from 3.8% to 4.2%
• Reduced rate on everyday goods to increase from 2.6% to 2.8%
• Proposal to be finalized by Parliament by March 2025
• Public vote on proposal to be held in September 2025

Source: taxually.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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