VAT rates in Switzerland vary according to the goods and services concerned. Here is an overview of the main VAT rates in force from January 1, 2024:
1. Standard rate: The standard rate of VAT in Switzerland is 8.1%. It applies to most goods and services, such as everyday consumer goods, clothing, electronics, professional services, leisure activities, restaurants, etc.
2. Reduced rate : A reduced rate of 2.6% is applied to certain specific goods and services. These include basic foodstuffs such as unprocessed agricultural products, books, newspapers and magazines, medicines, public transport, hotel accommodation, cinema and theater tickets, etc.
3. Special rate: A special rate of 3.8% applies to the hotel industry for accommodation services provided by establishments such as campsites, vacation homes, guest houses, etc.
It is important to note that certain goods and services may be exempt from VAT in Switzerland. This mainly concerns the fields of health, education, social and cultural services, as well as certain financial and real estate activities. These exemptions are subject to specific criteria and regulations.
In addition, companies registered for VAT in Switzerland must collect this tax on their sales and remit it to the tax authorities. They can also reclaim the VAT paid on goods and services they purchase for their business activities, thus minimizing the financial impact of the tax.
It should be noted that VAT rates in Switzerland may be revised from time to time, and may be subject to changes by the tax authorities. It is therefore important to keep abreast of updates and to consult an expert such as RISTER – Fiduciary in Geneva for precise advice on the VAT rates applicable to your specific activity in Switzerland.
A tax representative in Switzerland can play a vital role in helping an international company meet its VAT reporting obligations.
Regulatory watch: The tax representative monitors legislative and regulatory developments concerning VAT in Switzerland. He keeps the international company informed of important changes and new or modified obligations, enabling it to remain up to date and comply with evolving tax requirements.
It is important for an international company to choose a competent and experienced tax representative in Switzerland, who understands local regulations and the specifics of Swiss VAT. Working with a tax representative like RISTER can help ensure tax compliance, minimize risk and make it easier to manage Swiss VAT reporting obligations.
Contact us to start your initial consultation today. We’d be delighted to get to know you and work with you to define the next steps in registering your company for VAT in Switzerland.
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