Switzerland increases VAT rate to 8% from 2011 until 2018

Following a recent referendum, Switzerland has announced a temporary rise in its VAT rates.  The increase will help alleviate the costs the social security system which is undergoing reform.

The Swiss VAT rates will change as follows from 1 January 2011:

Standard VAT rate:    7.6% to 8.0%

Reduced VAT rate:    3.6% to 3.8% (hotels)

Super Reduced VAT rate:      2.4% to 2.5% (foodstuffs)

The increase will be withdrawn on the 1^st January 2018.