Swiss voters recently rejected a reform of the country's pension law, which will result in a reduction of VAT rates from 1 January 2018.
On 24 September 2017 a popular referendum took place in Switzerland regarding the 'Pensions 2020' project. Currently, VAT rates include a surcharge in relation to pension funds. The surcharge is set to expire on 31 December 2017 and the populace rejected a continuation of the surcharge. Consequently, VAT rates will reduce from 1 January 2018.
The new rates
The following VAT rates will apply from the new year.
|
Description |
Rate (%) 2017 |
Rate (%) 2018 |
|
Standard rate |
8 |
7.7 |
|
Food, medicine, books, news papers |
2.5 |
2.5 |
|
Supply of accommodation |
3.8 |
3.7 |
|
Hospital treatment, insurance |
Exempt without credit |
Exempt without credit |
Next steps
Companies in Switzerland should review their documentation, policies and accounting set-ups to ensure the appropriate rates are applied and used from 1 January next year. For example, invoice templates must be updated to include the new rates.
Talk to us
TMF Switzerland can assist you in reviewing your current operations in Switzerland, and preparing for the implementation of the new VAT rates. It is recommended this review is conducted as swiftly as possible.
Need more information? Get in touch with our team in Switzerland.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.