- Switzerland’s Federal Council has cut its proposed temporary VAT increase for defence funding from 0.8% to 0.5% after public criticism.
- The higher standard VAT rate would last 12 years (instead of 10), potentially starting in January 2028, with revenue ringfenced for military spending.
- The funds would support Patriot missile costs, F-35 purchases, Swiss Army defence upgrades, and possibly a second air defence system.
- Other VAT rates would be limited: hotel tax up 0.3 points, while the reduced 2.6% rate on essentials would stay unchanged.
- Separately, Parliament approved a 0.4% VAT rise for pensions (8.1% to 8.5%) on 17 June 2026, but it still needs a 2027 referendum.
Source: vatcalc.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.
Latest Posts in "Switzerland"
- VAT Assessment for Closely Related Services and Vehicle Private Use After Limitation Period
- Swiss Supreme Court Rejects VAT Exemption for Captive Reinsurer Support Payments
- No Direct Appeal: Import Tax on Diesel Subject to Mineral Oil Tax Rules
- VAT Input Tax Adjustment Dispute Over Holding Company Dividend Investments Dismissed
- VAT Input Tax Deduction for Zurich Airport Fees Denied in Part
