Swiss VAT rate cuts in 2018
Regulatory update

Swiss VAT rate cuts in 2018

24 October 2017

Swiss voters recently rejected a reform of the country’s pension law, which will result in a reduction of VAT rates from 1 January 2018.

On 24 September 2017 a popular referendum took place in Switzerland regarding the ‘Pensions 2020’ project. Currently, VAT rates include a surcharge in relation to pension funds. The surcharge is set to expire on 31 December 2017 and the populace rejected a continuation of the surcharge. Consequently, VAT rates will reduce from 1 January 2018.

The new rates

The following VAT rates will apply from the new year.

Description

Rate (%) 2017

Rate (%) 2018

Standard rate

8

7.7

Food, medicine, books, news papers

2.5

2.5

Supply of accommodation

3.8

3.7

Hospital treatment, insurance

Exempt without credit

Exempt without credit


Next steps

Companies in Switzerland should review their documentation, policies and accounting set-ups to ensure the appropriate rates are applied and used from 1 January next year. For example, invoice templates must be updated to include the new rates.

Talk to us

TMF Switzerland can assist you in reviewing your current operations in Switzerland, and preparing for the implementation of the new VAT rates. It is recommended this review is conducted as swiftly as possible.

Need more information? Get in touch with our team in Switzerland.

Learn how to successfully navigate foreign rules and regulations. 

Written by

Jurgen Borgt

Director, Client Services

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