Increase in VAT tax rates as of 1 January 2024

From 1 January 2024, the following VAT rates will apply in Switzerland
– Standard rate: 8,1%
– Reduced rate: 2,6%
– Special rate for accommodation: 3,8%
The flat-rate tax rates will also change as part of this increase. The FTA has pub-lished the main changes and information in connection with the VAT increase in VAT Info 19.
A number of things need to be taken into account when issuing invoices. Normally, the date on which the service is provided is decisive for the applicable tax rate, re-gardless of the invoice date. For periodic services that extend beyond 31 December 2023, the services must be reported and invoiced pro rata at the old tax rate until 31 December 2023 and at the new tax rate from 1 January 2024. If services are not split up in the invoice, the entire invoice amount must be settled at the new tax rates and the excess tax is owed. Orders that have not yet been completed in the old year and are not invoiced until the new year must be invoiced at the old rates. Discounts and refunds on invoices that were issued in 2023 but will not be credited until 2024 must be settled at the old rates.