Switzerland: VAT rate reduction effective January 2018 - KPMG Global
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Switzerland: VAT rate reduction effective 1 January 2018

Switzerland: VAT rate reduction effective January 2018

The rates of value added tax (VAT) in Switzerland will be reduced effective 1 January 2018. This provides a short deadline for taxpayers to prepare for the new lower rates.


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In a vote connected to the reform of the pension scheme law, the Swiss voters rejected a 0.3% VAT surcharge for pension funds. Given that the existing surcharge expires 31 December 2017, VAT rates will be reduced to 7.7% (standard or normal rate) and 3.7% (special rate for accommodation) as of 1 January 2018. The “reduced rate” of 2.5% will remain unchanged.

Taxable persons will have to adapt their systems (including VAT codes and invoice templates), pricing, and various agreements that are influenced by the VAT rates, including online and paper marketing material or offerings. Companies that were not already prepared now have a very short deadline to prepare. For example, if a new car is to be delivered in January 2018, the sales agreement, account invoice, and leasing rate must be based on the new rate of 7.7%.


Read a September 2017 blog item posted by the KPMG member firm in Switzerland

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

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