Switzerland – Increase in Swiss VAT rates as from the 1st of January 2024

On 25 September 2022, the AHV 21 reform was adopted in Switzerland to secure the financing of the AHV until 2030.

To cover an expected deficit in the AHV state pension scheme, Swiss VAT rates will increase as follows:

The increase in VAT rates will take effect on 1 January 2024. We expect the FTA to publish guidance on its website before the new VAT rates come into force, explaining how the new rates are to be applied to supplies and invoices spanning the changeover period.

My recommendation

The necessary adjustments in ERP systems often turn out to be more complex and time-consuming than expected. Therefore draw up a timetable as early as possible to ensure that systems are converted to the new VAT rates on time and that invoices are issued correctly.

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