Swiss VAT drops to 7.7% 2018
- Sep 23, 2017 | Richard Asquith
On 24 September 2017, the Swiss population rejected a proposal to raise VAT to 8.3% from the current 8%. This proposal was in support of a pension reform package, including more flexibility around the retirement age, with increased contributions from employers and employees.
As a result of this vote - 53% of voters rejected the proposal - a scheduled reduction of the 8% VAT rate to 7.7% will go ahead instead on 1 January 2018. There will be no change to the reduced VAT rate of 2.5%. The special reduced VAT rate on hotels of 3.8% would fall to 3.7%.