Switzerland confirms new VAT rates

Date09 Nov 2017

The Swiss authorities have confirmed that VAT rates will be reduced as from 1st January, 2018, as a result of the 24th September referendum.

As anticipated, the standard VAT rate and the special rate for accommodation will be reduced to 7.7% and 3.7% respectively, although the reduced VAT rate applicable on foodstuff, water and other basic supplies will continue at 2.5%.

New appropriate VAT rates are shown in the table below:

Current VAT rates Applicable VAT rates 1 January 2018
Standard VAT rates 8% 7.7%
Special rates for accommodation services 3.8% 3.7%
Reduced 2.5% 2.5%

How might this impact your business?

The Swiss Federal tax administration declared that there will be new ‘VAT Return’ forms to submit the returns corresponding to the fourth quarter 2017, second semester 2017, first quarter 2018 and first semester 2018.

You can locate the new forms here from the Swiss Federal Tax Administration’s website.

These new forms will contain the new VAT rates and the current ones, giving some time for taxpayers to adapt to the new requirements.

Additionally, VAT rate changes require ERP systems to be modified and all invoices to be issued with the correct rate as from 1st January, 2018. Consequently, all companies should look at reporting rules on credit notes cancelling invoices with old VAT rates, tax point rules to define which rate applies and invoicing rules in Switzerland.

amavat® provides a ‘one-stop-shop’ solution for VAT Compliance within Europe. We assist clients with a single point of contact that speaks their language and handles all VAT related issues with a standard and cost efficient approach.

If you have any queries or questions, please do not hesitate to contact amavat®.

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