Swiss VAT Rate Changes for 2024

New VAT Rates in Switzerland

Starting from January 1, 2024, Switzerland will raise all the current VAT rates.

The final VAT rates applicable in the country after January 2024 will be the following:

• Standard VAT rate: It will increase to 8.1%, up from the current 7.7%.
• Reduced VAT rate: This rate will rise to 2.6%, compared to the existing 2.5%.
• Special VAT rate for accommodation: It will be adjusted to 3.8%, up from the current 3.7%.

Find here the official notice with the new VAT rates applicable from January 2024.

Impact on Compliance

Businesses should be prepared to assess the impact of these VAT rate changes on their compliance functions. In order to do so, you must consider the tax point rules determining the moment when the tax liability arises:

• The general rule is by the time when the invoice is issued.
• Partial payments: issuance of the partial invoice or time of receiving the payment.
• Advance payments: at the time of receiving the advanced payment.

Other tax point rules may apply to special scenarios.

In consequence, your VAT reporting team should monitor and ensure the correct reporting of transactions that span across different rate periods. Credit notes and continuous supplies of services can often raise questions regarding your reporting obligations. Therefore, it is advisable to review your internal procedures and systems to ensure they align with the new VAT rates and reporting requirements. Contact Marosa to clarify tax point rules and VAT reporting obligations ahead of the VAT rate changes in Switzerland.

Finally, the VAT rate change also implies an update of the VAT return form. Find here the new VAT return form available on the tax authorities’ website.