NEWS

 

Changes at AHV and value added tax

The Swiss electorate voted by an extremely close margin in favor of ensuring the old-age and survivors' insurance (“AHV”). This decision will bring the following changes:

 

Increase in value added tax (“VAT”) planned as of January 1, 2024

Standard rate from                7.7%      to           8.1%

Reduced tax rate from           2.5%      o            2.6%

Special rate from                   3.7%      to           3.8%

 

Companies reporting based on the net tax rate (Saldosteuersatz) or flat tax rate (Pauschalsteuersatz) will also be affected by the VAT increase, as their consented tax rates are expected to change as well.

 

Although the scheduled date of increase still seems to be far away, we recommend planning enough time to make system adjustments in time. Specific issues should be addressed early on. E.g.:

 

  • Which services should be calculated using the old and which using the new tax rate?
  • How should advance payments, discounts, reductions, etc. be handled?
  • Do contracts need to be adjusted? How should contracts be issued immediately?

 

If you have any questions or if you need help with the implementation, please do not hesitate to contact our VAT expert Tatjana Späni, spaeni@fineac.ch, we are pleased to support you.

 

Changes to the Federal Law on Old Age and Survivors' Insurance (“AHV”) as of January 1, 2024

 

The retirement age for women and men will now be the same at 65. The retirement age for women will be increased gradually from 64 to 65. This increase will be cushioned by compensatory measures: Women born between 1961 and 1969 can take early retirement on better conditions or receive a supplement to their AHV pensions if they work to 65.

 

The new law also brings more flexibility: it is possible to decide freely on the retirement age between 63 and 70 and to gradually reduce employment due to partial pensions. Those who work longer than 65 can now close contribution gaps under certain conditions and thus improve their pension.

 

 

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Kathrin Kühn, 26. September 2022