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August 30, 2023
Higher VAT rates in Switzerland from 2024
Swiss authorities have decided to raise VAT rates. The change is expected to take effect on January 1, 2024.
The decision was made as a result of the September 2022 vote, where an amendments to the AHV Act and the federal decree on the supplementary financing of the AHV were adopted.
Below you will find a summary of the VAT rates in Switzerland currently in effect and those that will take effect in 2024:
STANDARD VAT RATE
the current rate in effect in 2023: 7.7%
the new rate, which will take effect in 2024: 8.1%
goods and services subject to specific VAT rates: applies to all goods and services for which no exemption or one of the reduced VAT rates is provided
SPECIAL VAT RATE
the current rate in effect in 2023: 3.7%
the new rate, which will take effect in 2024: 3.8%
goods and services subject to specific VAT rates: applies to the provision of accommodation
REDUCED VAT RATE
the current rate in effect in 2023: 2.5%
the new rate, which will take effect in 2024: 2.6%
goods and services subject to specific VAT rates: applies to foodstuffs, seeds, cut flowers, medicines, newspapers, magazines, books, cultural and sporting events
It means that companies operating in Switzerland should follow the situation closely to make sure they have enough time to implement VAT rate changes in their business processes and ERP systems.
The Swiss authorities have also updated the VAT return form. The sample document includes boxes for transactions at current VAT rates and future VAT rates effective from 2024. It can be found on the authority's website.
In order to find the official guidelines for VAT rates in Switzerland, please follow this link.
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Author: Julia Kruszona, VAT Team Leader at EFF
