Switzerland VAT Updates for 2025: Changes in Exemptions and Rates

As part of a broad VAT system reform, Switzerland is implementing key changes to VAT rules effective as of January 2025:

• New e-commerce VAT rules: deemed supplier model for online platforms
• New annual reporting period
• Fiscal representative exemption

In this article we will focus on the expansion of VAT exemptions without right to deduct list and a product moved to the reduced rate of 2.6%.

Expansion of VAT Exemptions

Under the revised Swiss VAT Law effective 1 January 2025, significant changes will expand the scope of VAT-exempt supplies without credit (Art. 21 VAT Law):

• Broader inclusion of medical care facilities: Previously limited to hospitals and similar establishments, VAT exemptions will now extend to outpatient clinics and day clinics for medical treatments.
• Care coordination services added: For the first time, care coordination services related to medical treatment will qualify as VAT-exempt without credit. 
• Social welfare and security services: currently, VAT exemptions for services from social welfare institutions only cover public entities. From 2025, private entities providing similar services, such as home care and residential or nursing home services, will also benefit from the exemption.
• Travel agency services will also be included as VAT exempt, with an option to tax.

Reduced VAT Rate for Menstrual Hygiene Products

Starting 1 January 2025, menstrual hygiene products—including tampons, sanitary towels, panty liners, menstrual cups, and similar items—will be taxed at the reduced VAT rate of 2.6%, down from the standard rate of 8.1%. 

How Can Marosa Help you with VAT Rate Changes?

These changes broaden the scope of VAT exemptions, affecting companies in healthcare, social services, and retail sectors. Businesses should evaluate whether to opt for VAT registration or leverage the exemptions strategically. For tailored guidance on how these updates might impact your VAT compliance, feel free to contact our team. 

Marosa's VAT software VATify automatically applies updated VAT rates across jurisdictions, ensuring compliance and accuracy in VAT calculations and reporting.