Increase in Swiss VAT rates

As of 1 January 2024, the rates of Swiss VAT will change. The standard VAT rate will increase from the currently 7.7 percent to 8.1 percent. The special rate for accommodation and the reduced tax rate will each increase by 0.1 percent to 3.8 and 2.6 percent.


Current rate until Dezember 31, 2023New rate as per January 1, 2024
Standard tax rate7.7 %8.1 %
Reduced tax rate2.5 %2.6 %
Special rate for accommodation3.7 %3.8 %

Thus, the standard rate will increase most, by 0.4 percent. As a result of these increases, the turnover thresholds for the application of the net tax rate method and the net tax rates themselves will also be adjusted accordingly.

For the delimitation between the current and the new VAT rates, only the time of supply/provision of service is decisive (invoice date or payment date are irrelevant in this respect). Supplies and services rendered before January 1, 2024 must be accounted for at the currently applicable tax rates. Supplies and services rendered as of January 1, 2024 are subject to the new tax rates. In the case that supplies or services are invoiced in advance for cross-period supplies/services (i.e. advance payments/advance invoices), the consideration for the period of the supply or service before and after the application of the new rates has to be split, if necessary, in partial invoices (allocation of services/supplies). Permanent contracts and contracts with effect beyond the end of the year must be adjusted to the changing rates pro rata temporis in due time, i.e. the date and time of the supply/service and the respective share of the consideration attributable to it must be shown separately (otherwise the new, higher tax rate applies to the entire invoice). In the case of diminution of consideration, turnover bonuses, returns and rescission of a service relationship, the applicable tax rate is based on the underlying service/supply.

Integration with accounting and billing systems

Furthermore, the increase in tax rates means that VAT payers should integrate the changed rates into the accounting and billing systems for the invoicing process at an early stage and adapt existing contracts/documents (price lists/cash receipts). This should be ensured at the latest at the time of the year change.


According to the notification published by the Swiss Federal Tax Administration, turnover at the new rates can only be declared for the first time in the VAT declaration for the 3rd quarter of 2023 – or in the statement for the second semester 2023 (when applying the net tax rate method) respectively in the declaration for the month July 2023 (if VAT is declared monthly) – even if it is already subject to the new higher VAT rates before. For example, a respective turnover for the 2nd quarter of 2023 has to be declared provisionally at the current VAT rate with the Q2/2023 declaration and to be corrected later (at the latest with the annual corrective VAT return 2023).

We will be happy to assist you in case of questions in this regard.