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The Swiss Government Has Approved a VAT Increase in 2024

December 30, 2022

The new Swiss VAT rates will take effect in January 2024, after they are approved by the country's parliament. Will your company be ready? The pace of change may be faster than you anticipate.

The value-added tax landscape is dynamic, with the most recent shifts focusing on Swiss VAT rates. With this revision, however, comes word that a Swiss e-filing site has been authorized. This is the information your company needs to know in order to adapt to the impending shifts.

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Switzerland's VAT Refund System

Switzerland establishes its own VAT rates since it is not a member of the European Union. So, companies based outside of Switzerland that sell products or provide services to Swiss residents must add on the necessary value-added tax. However, insurance, financial services, education, and healthcare are free from Swiss VAT.

Businesses that are registered for value added tax in either an EU member state or a country outside the EU may recoup the VAT they paid in Switzerland. Each kind of reclamation, however, will have its own unique procedure. Depending on where you do business, either the EU VAT Refund Directive or the 13th Directive will apply to you.

Switzerland's new VAT rates are as follows:

An increase in value-added tax rates was approved by Swiss voters on September 25. As of January 1, 2024, you may anticipate these changes taking effect. The dates of implementation, however, will not be known until December 2022, when they will be confirmed by the Swiss Federal Council. 

Background

Voters in Switzerland supported raising the value-added tax rate to help shore up the country's underfunded pension system. Rate increases were approved by both the National Council and the Council of States in December 2021, but a referendum was still necessary. The rates in issue were approved by 55.07 percent of voters on September 25, 2022.

The newly authorized higher VAT rates

The following increases have been made to the regular VAT rates:

  • 7.7% to 8.1% (+0.4%) is the standard rate of value-added tax.

  • Decreased value-added tax rate: 2.5% down to 2.6% (+0.1%)

  • Accommodations are subject to an increased value-added tax rate of 3.7% (+0.1%).

Businesses that do business in Switzerland need to know about these changes ahead of time so they can make plans.

The Swiss Tax Authority plans to replace the "ESTV SuisseTax" online platform with the "ePortal." This was announced at the same time that a VAT rate increase was approved.

Enhanced Functionality of the Electronic Filing System

The new date is set for the first week of November 2022. The goal of the change is to consolidate all VAT-related services into a single online hub. All aspects of value-added tax paperwork, including declarations, returns, and certificates, will be handled via the brand-new ePortal.

The Swiss Tax Authority has assured customers that the migration from the SuisseTax portal to the ePortal would not require any more work on their part. There will be a seamless transition to the ePortal, where the user will be redirected after the process is complete.

Get in touch with our specialists if you want to know more about the switch from "ESTV SuisseTax" to "ePortal," and we'll make sure you're up-to-date and in compliance at all times.

Do you need help obtaining Swiss VAT refunds? You may expedite the refund process by letting us handle any questions the VAT authorities may have. Contact our team now, and we'll take care of your Swiss VAT requirements.

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