Key takeaways
- The Federal Council first planned to raise the standard VAT rate from 8.1% to 8.8% in 2026 to fund a 13th monthly pension payment.
- In June 2026, Parliament approved a smaller rise to 8.5% standard and 4% accommodation from 2028 instead.
- The reduced rate stays at 2.6%, and the change is subject to a public vote on 29 November 2026.
In short: The Swiss Federal Council planned to raise Switzerland’s standard VAT rate from 8.1% to 8.8% in 2026. The Swiss VAT increase would fund a 13th monthly pension payment and raise an extra CHF 4.2 billion for pension finances until 2030.
Update (October 2026): In June 2026, Parliament approved a smaller rise, to 8.5% standard and 4% accommodation from 2028, subject to a public vote on 29 November 2026. The reduced rate would stay at 2.6%. The rise could apply from early 2028 at the earliest and is expected to raise about CHF 1.4 billion a year from 2029.
The Swiss Federal Council has announced plans to raise the standard VAT rate from 8.1% to 8.8%. The aim is to help fund a 13th monthly payment for pensioners. The Swiss Cabinet approved the plan on October 16. Read more in our guide: New VAT Rules for E-Commerce in Switzerland From 2025.
The increase is expected to take effect in 2026. It aims to bring in an extra CHF 4.2 billion to support pension finances until 2030.
In 2024, Switzerland already raised its VAT from 7.7% to 8.1% to close pension funding gaps. But recent developments showed the need for further increases. Related reading: Changes to Swiss Annual VAT Reporting Planned for 2025.
Other Swiss VAT rates would rise too. The special rate for the accommodation sector is set to increase from 3.8% to 4.2%. The reduced rate on everyday goods is set to rise from 2.6% to 2.8%. For a closer look, see New Government of Estonia Plans to Raise VAT to 24%.
At the time, Parliament was set to finalize the proposal by March 2025, followed by a public vote in September 2025.
What does this mean for businesses?
Until any change takes effect, the current Swiss VAT rates apply: 8.1% standard, 2.6% reduced and 3.8% for accommodation. Nothing changes in 2026 or 2027.
If voters approve the increase on 29 November 2026, businesses registered for Swiss VAT, including foreign sellers, should prepare to:
- Update VAT rates in billing, checkout and accounting systems for the start date.
- Review prices and contracts that run past the change.
- Apply the right rate to invoices that cover periods before and after the change.
If voters reject it, the current rates stay. The Federal Social Insurance Office explains the proposal on its vote page. For registration and filing rules, see our Swiss VAT guide.
Who must register for VAT in Switzerland?
A business must register for Swiss VAT once its turnover reaches CHF 100,000 a year. The test counts taxable and exempt supplies made in Switzerland and abroad, so foreign businesses count their worldwide turnover.
- Deadline: register with the Federal Tax Administration within 30 days of becoming liable.
- Foreign businesses: a business with no residence, registered office or branch in Switzerland must appoint a Swiss tax representative. Registration without one is generally not possible. The tax administration usually waives a security deposit, but can ask for one if a business misses procedural deadlines.
- Reverse-charged services: a foreign business that supplies only exempt services, or services the Swiss customer taxes under the reverse charge (Bezugsteuer), does not become liable.
- Mail-order sellers: a seller with at least CHF 100,000 a year from small consignments into Switzerland must register. It then charges Swiss VAT on its shipments into Switzerland, as a Swiss business would.
- Online platforms: since 1 January 2025, a platform that brings sellers and buyers together counts as the supplier of the goods sold through it.
The Federal Tax Administration sets out the rules for foreign businesses.
How much would the VAT rise add to prices?
The rise approved by Parliament would add 0.4 percentage points to the standard rate. On a product priced at CHF 1,000 before VAT, VAT would go from CHF 81 to CHF 85. The gross price would rise from CHF 1,081 to CHF 1,085.
For a hotel night costing CHF 200 before VAT, VAT would rise from CHF 7.60 at 3.8% to CHF 8 at 4%. Goods at the 2.6% reduced rate, such as most food, would see no change.
Key dates
- 19 June 2026: Parliament adopts the federal decree on extra AHV funding through higher VAT.
- 29 November 2026: public vote.
- Early 2028: earliest date the new rates could apply.
How Taxually handles this
Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.
Related guides
Frequently asked questions
When will Switzerland’s new VAT rate increase take effect?
The original plan to raise the standard rate from 8.1% to 8.8% in 2026 was not adopted. In June 2026, Parliament approved a rise to 8.5% from 2028. It is subject to a public vote on 29 November 2026.
What other Swiss VAT rates are changing?
Under the version Parliament approved, the accommodation VAT rate will rise from 3.8% to 4% from 2028. The reduced VAT rate on essential goods stays at 2.6%. The increase aims to help fund the 13th monthly pension payment.
What are the current Swiss VAT rates?
Switzerland charges 8.1% standard VAT, a 2.6% reduced rate on items such as most food, medicines and books, and a 3.8% special rate for accommodation.
When do Swiss voters decide on the VAT increase?
The public vote is on 29 November 2026. If approved, the standard rate would rise to 8.5% and the accommodation rate to 4%, from early 2028 at the earliest.
What is the VAT registration threshold in Switzerland?
A business must register once its turnover from taxable and exempt supplies, in Switzerland and abroad, reaches CHF 100,000 a year. Foreign businesses count their worldwide turnover.
Do foreign businesses need a Swiss tax representative?
Yes. A business with no residence, registered office or branch in Switzerland must appoint a Swiss tax representative to register for VAT.
Do online marketplaces charge Swiss VAT?
Since 1 January 2025, an online platform that brings sellers and buyers together is treated as the supplier of the goods sold through it. The platform, not the seller, then accounts for Swiss VAT on those sales.
