Swiss VAT

Changes to Switzerland’s Value Added Tax (VAT) Act will enter into force on January 1, 2018, with the aim of removing VAT-related competitive disadvantages for domestic companies. Currently, a multinational company pays only VAT on its Swiss turnover. Foreign companies providing services in Switzerland do not have to pay VAT…

A VAT rate of 8% applies to most goods and services. A reduced rate of 2.5% applies to certain everyday consumer goods such as foodstuffs, non-alcoholic beverages, books, newspapers, magazines, medicines, but also to tickets for sports and cultural events. Only overnight stays at a hotel (incl. breakfast) are taxed…