- Switzerland implemented VAT on January 1, 1995, replacing the turnover tax
- The VAT system was redesigned in 2010 for simplicity and user-friendliness
- VAT rates increased on January 1, 2024, to fund social insurance
- VAT is a consumption tax applied at all production and service stages
- It applies to imports and goods and services by Swiss companies
- Taxpayers can deduct input tax from their VAT liability to avoid cumulative taxation
- Standard VAT rate is 8.1 percent
- Lodging services have a VAT rate of 3.8 percent
- Necessities like food and medicine have a VAT rate of 2.6 percent
- The Federal Office for Customs and Border Security manages customs duties
- The Federal Tax Administration collects VAT
- About 20 percent of VAT revenue supports social insurance and public services
Source: fiscal-requirements.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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