- Switzerland’s Federal Council published a dispatch on May 7, 2026, proposing to extend the reduced VAT rate of 3.8% for accommodation services (including hotels) from its current expiry date of December 31, 2027, to December 31, 2035.
- Despite presenting the amendment, the Federal Council recommended that Parliament reject this extension.
- The Council’s reasoning for rejection is that the hotel industry is currently performing well, making the continuation of the reduced VAT rate no longer economically justifiable.
Source Orbitax
Switzerland Proposes Extending 3.8% Hotel VAT Rate Until 2035
- Switzerland has published a draft bill to extend the 3.8% special VAT rate for hotel accommodation services.
- The extension would move the expiration date from December 31, 2027, to December 31, 2035.
- The law would take effect on January 1, 2028, pending a referendum.
Source: news.bloombergtax.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.
