News Value Added Tax

Increase of VAT rates as of January 1, 2024

In the vote of September 25, 2022, the amendment of the AHV law and the federal resolution on the additional financing of the AHV were approved, which is why new VAT rates will apply as from January 01, 2024:

currently new

Standard rate 7.7% 8.1%

Reduced tax rate 2.5% 2.6%

Special rate for accomodation services 3.7% 3.8%

The increase of the tax rates also leads to a corresponding adjustment of the tax rates for companies which are reporting under the net tax rate or flat tax rate method. Furthermore, the turnover and tax liability limits for the application of the net tax rate method will also change.

Although the date of the effective increase of the VAT rates still seems far away, we recommend planning enough time to make system adjustments.

In addition, specific questions should be handled at an early stage. e.g.,

Which services should be billed at the old tax rate and which at the new rate?
How should advance payments, discounts, rebates, etc. be handled?
Are contracts to be adjusted? How are contracts to be issued as from now?

We will be pleased to assist you with the clarifications. For individual advice or further information, please contact Tatjana Späni, our VAT expert spaeni@fineac.ch.

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Tatjana Späni, 21 December 2022