Last year, we told you about a reform of the Old Age and Survivors’ Insurance Scheme (AVS 21) that would lead to an increase in VAT rates in Switzerland.
The rate increases will take effect from 1 January 2024.
- Standard rate: from 7.7% to 8.1%.
- Reduced rate: from 2.5% to 2.6%.
- Special rate: from 3.7% to 3.8%.
The special rate of 3.8% applies to accommodation services (overnight stays with breakfast) in hotels and lodgings (e.g. holiday flat rentals).
The reduced rate of 2.6% applies to certain categories of goods and services, including :
- Foodstuffs (with the exception of alcoholic beverages) in accordance with the Foodstuffs Act of 20 June 2014 (exception: the standard rate applies to foodstuffs that form part of catering services).
- Animals and agricultural products: cattle, poultry, fish, seeds, live plants, cut flowers, cereals.
- The medical sector: medicines.
- Printed products: newspapers, magazines, books and other non-advertising printed products in accordance with the procedures laid down by the Federal Council.
- Electronic products: newspapers, magazines and non-advertising electronic books in accordance with the procedures laid down by the Federal Council.
- Media services: radio and television companies (exception: the standard rate applies to commercial services).
Source : Swiss Federal Tax Administration (link in French).
For more information, please contact our tax experts.
