Announced new VAT rates in Switzerland

Following our earlier announcements, the Swiss authorities confirmed that VAT rates will be reduced as from 1 January 2018 as a result of 24 September referendum.


Reduction on VAT rates in Switzerland

As expected, the standard VAT rate and the special rate for accommodation will be reduced to 7.7% and 3.7% respectively, whereas the reduced VAT rate applicable on food, water and other basic supplies will remain at 2.5%.

New applicable VAT rates are shown in the table below:

Current VAT rates in Switzerland Applicable VAT rates (1 January 2018)
Standard VAT rates 8% 7.7%
Special rates for accommodation services 3.8% 3.7%
Reduced rates 2.5% 2.5%

How is this impacting your business?

The Federal Tax Administration announced that there will be new VAT return forms to submit the returns corresponding to the fourth quarter 2017, second semester 2017, first quarter 2018 and first semester 2018. You can find the new forms if Federal Tax Administration’s page.

These new forms will include the new VAT rates and the current ones, giving some time for taxpayers to adapt to the new requirements.

Furthermore, VAT rate changes require ERP systems to be adapted and all invoices to be issued with the correct rate as from 1 January of 2018. Therefore, all companies should look at reporting rules on credit notes cancelling invoices with old VAT rates, tax point rules to determine which rate applies and invoicing rules in Switzerland. Please send us an email if you need help with any of these requirements.


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