Switzerland Increases VAT Rates Beginning in 2024

On December 9, 2022, the Swiss Federal Council set a date for the AHV 21 reform to come into effect, which includes a measure to increase the currently applicable VAT rates.

Timeline

The new VAT rates will be applicable from January 1, 2024.

New Rates

The VAT rates will change as follows:

• Standard rate - increased from 7.7% to 8.1%
• Reduced rate - increased from 2.5% to 2.6%
• Special rate for accommodation - increased from 3.7% to 3.8%

Companies must be ready to update their systems once the new rates are effective.

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