The increase of the VAT rates was approved in the referendum of September 25th, 2022 on the financing of the old-age and survivors’ insurance (AHV). The Federal Council has yet to decide on the date on which the new VAT rates will come into force. It is expected to be enacted on January 1st, 2024.
The VAT rates will be increased as follows:
| VAT rate | until 31.12.2023 | from 1.1.2024 |
| Standard rate | 7.7% | 8.1% |
| Accommodation services | 3.7% | 3.8% |
| Reduced rate | 2.5% | 2.6% |
The VAT rate change will follow the model already known from the past: The decisive factor for determining the applicable VAT rate is the time at which the supply takes place. Supplies up to December 31, 2023 will be subject to the current VAT rates, supplies from January 1 st, 2024 onwards will be subject to the higher VAT rates.
Periodic services that are provided overlapping in both calendar years (e.g. software licenses, newspaper subscriptions, etc.) must either be split on the respective invoice or must be invoiced in their entirety at the higher VAT rate. Furthermore, it can be assumed that the Federal Tax Administration will allow the application of the new VAT rates for periodic supplies from the second half of 2023, and will adapt the electronic VAT return forms for this date.
There is therefore no immediate need for action. As soon as the transitional provisions for the VAT rate increase are announced, we will inform you again.