VAT in Switzerland 2026 – Current Rates, Recent Changes and What’s Coming

Switzerland is one of Europe’s most dynamic e-commerce markets, with up to 90% of the population shopping online regularly and the country ranking first in the UN Trade and Development B2C E-Commerce Index. For businesses selling in Switzerland, understanding the current VAT framework — including rates, recent regulatory changes, and planned future developments — is essential.

Background: Why Switzerland Changed Its VAT Rates

Switzerland’s VAT system underwent a significant change on 1 January 2024, when all three VAT rates were increased following a national referendum held on 25 September 2022. The vote approved higher VAT to strengthen funding for the Swiss public pension system (AHV/AVS). The increases affected all three applicable rates.

Current VAT Rates in Switzerland (2024–2026)

Swiss VAT rates have remained unchanged since 1 January 2024 and continue to apply in 2026:

• Standard rate: 8.1% — applies to most goods and services
• Reduced rate: 2.6% — applies to essential goods and services
• Special accommodation rate: 3.8% — applies exclusively to overnight accommodation services

These rates replaced the previous levels of 7.7%, 2.5%, and 3.7% respectively.

What the Reduced Rate (2.6%) Covers

The reduced rate applies to:

• Food and non-alcoholic beverages (excluding alcohol)
• Cattle, poultry, and fish
• Seeds, live plants, and cut flowers
• Cereals, animal feed, and fertilisers
• Medicines
• Books and newspapers
• Services of radio and television companies
• Menstrual hygiene products (added from 1 January 2025, previously taxed at the standard rate)

The Accommodation Rate (3.8%)

This special rate applies to hotel stays, holiday apartments, bed and breakfasts, and similar overnight accommodation services.

Important: Supply Date Determines the Applicable Rate

The date of supply — not the date of invoice or payment — determines which VAT rate applies. This is particularly relevant for businesses managing long-term contracts spanning multiple years. If a contract covers a period that crosses a rate change date, the applicable VAT rate must be updated accordingly for supplies made after that date.

Key VAT Changes in 2025

Several important changes to the Swiss VAT system took effect on 1 January 2025:

Deemed supplier rules for online platforms — Switzerland introduced a deemed supplier model for online marketplaces, meaning platforms are now responsible for collecting and remitting VAT on certain transactions, simplifying compliance for smaller sellers.

Expanded VAT exemptions — The scope of VAT-exempt supplies was broadened to include outpatient and day clinics, care coordination services, private providers of home care and residential care services, and travel agency services (with an option to tax).

Annual VAT filing for eligible SMEs — Eligible SMEs with annual turnover below CHF 5,005,000 and a clean compliance record can now opt for annual VAT filing instead of the default quarterly returns.

Digital-only registration and filing — All new VAT registrations and declarations must now be submitted through the Federal Tax Administration’s e-portal; paper-based processes have been discontinued.

Future Rate Change: Planned but Delayed

A further VAT rate increase has been under discussion in Switzerland. The National Council confirmed a draft decree for a temporary increase of 0.7 percentage points, which would raise the standard rate from 8.1% to 8.8%, potentially applying from 1 January 2028 to December 2033. This is designed to generate approximately CHF 4.2 billion annually to fund a 13th monthly pension payment for retirees. However, the increase remains subject to a public referendum and is not yet enacted.

For businesses operating in Switzerland, no rate change is required before 2028 at the earliest. However, monitoring the parliamentary and referendum process is advisable for forward planning.

Summary

Swiss VAT in 2026 operates at three stable rates — 8.1%, 2.6%, and 3.8% — unchanged since the 2024 reform. The most significant recent developments are the 2025 changes to platform taxation rules, expanded VAT exemptions, and the introduction of annual SME filing. A further rate increase to 8.8% is being discussed but has been delayed to no earlier than 2028.

For e-commerce businesses selling in Switzerland, proper VAT compliance requires applying the correct rate to each product category, monitoring the supply date rules, and staying informed about the evolving platform taxation and filing requirements.

For guidance on VAT compliance in Switzerland, our team is ready to help: Contact us — amavat®