The rates of value-added tax (VAT) in Switzerland will be reduced effective 1 January 2018. VAT rates will be reduced to 7.7% (standard VAT rate) and 3.7% (special VAT rate for accommodation) as of 1 January 2018. The “reduced rate” of 2.5% will remain unchanged.
Please bear in mind that with effect from 1st January 2018, a revision of Swiss VAT Laws will trigger some significant changes for foreign businesses operating in Switzerland and Liechtenstein. Most notably the now existing VAT-Threshold of 100,000 CHF will remain in place, however, as to be calculated on worldwide turnover, this will effectively lead to an obligation for any non-established business with a total turnover greater than 100,000 CHF annually to register for Swiss VAT from the first taxable turnover generated in Switzerland.
Please speak to us about these changes and how we can efficiently help you.