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

Switzerland applies a straightforward three-tier VAT system. The rates in force in 2026 are the result of a national referendum held in September 2022, which approved increases across all three tiers to strengthen funding for the Swiss public pension system (AHV/AVS). The new rates took effect on 1 January 2024 and remain unchanged in 2026.

Current Swiss VAT Rates

Standard rate — 8.1%
Applies to most goods and services not covered by reduced rates, including clothing, electronics, alcohol, cosmetics, and most professional services. This rate increased from the previous 7.7%.

Reduced rate — 2.6%
Applies to essential goods and services including food and non-alcoholic beverages, medicines, books and newspapers, seeds and live plants, animal feed, services of radio and television companies, and — from 1 January 2025 — menstrual hygiene products. This rate increased from the previous 2.5%.

Special accommodation rate — 3.8%
Applies exclusively to hotel stays, holiday apartments, bed and breakfasts, and other short-stay accommodation services. This rate increased from the previous 3.7%.

Key Rule: Supply Date Determines the Rate

The date of supply — not the date of invoice or payment — determines which VAT rate applies to a transaction. For businesses managing long-term contracts spanning multiple years, this means VAT rates must be updated in line with the applicable rate at the time each supply takes place.

Notable Changes from 2025

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

Menstrual hygiene products moved from the standard 8.1% rate to the reduced 2.6% rate.

Deemed supplier rules for online platforms — Switzerland introduced a model under which certain online marketplaces are responsible for collecting and remitting VAT on transactions facilitated through their platforms, simplifying compliance for smaller sellers.

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

Annual VAT filing for eligible SMEs — businesses 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 cycle.

Digital-only registration and filing — all new VAT registrations and returns must be submitted through the Federal Tax Administration’s e-portal. Paper-based processes have been discontinued.

A Further Rate Increase Is Under Discussion

A temporary increase of 0.7 percentage points across all Swiss VAT rates is being considered by parliament. If approved by referendum, the standard rate would rise from 8.1% to 8.8%, with corresponding increases to the reduced and accommodation rates. The revenue generated — approximately CHF 4.2 billion annually — would fund a 13th monthly pension payment for retirees. The increase is not yet enacted and would apply no earlier than 1 January 2028, subject to the outcome of a public vote.

Summary

For questions about Swiss VAT compliance or cross-border sales into Switzerland, our team is ready to help: Contact us — amavat®