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Swiss VAT Rate Increases Planned for 2026

Swiss VAT Rate Increases Planned for 2026

Switzerland to raise VAT to 8.8% by 2026, funding an extra pension payment and supporting pension finances.

The Swiss Federal Council has announced plans to raise its standard VAT rate from the current 8.1% to 8.8% to help fund a 13th monthly payment for pensioners. Approved by the Swiss Cabinet on October 16, the increase is expected to take effect in 2026 and aims to bring in an additional CHF 4.2 billion to support pension finances until 2030.

Earlier this year, Switzerland already adjusted its VAT from 7.7% to 8.1% to close pension funding gaps, but recent developments highlighted the need for further increases. Alongside raising the standard VAT rate, the special rate for the accommodation sector is set to increase from 3.8% to 4.2%, and the reduced rate on everyday goods from 2.6% to 2.8%.

Parliament is set to finalize the proposal by March 2025, followed by a public vote in September 2025.

November 6, 2024
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Lorem Ipsum has been the industry's standard dummy text ever since the 1500s,
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when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries
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