New VAT rates in Switzerland
As of January 1, 2024, significant changes are taking place in the Swiss economy, including adjustments to customs and VAT rates.
As of January 1, 2024, significant changes are taking place in the Swiss economy, including adjustments to customs and VAT rates.
24. July
Earlier, we reported the news of a partial removal of the Swiss customs barrier: Duty-free trade in Switzerland.
Positive news from the government was announced, indicating the complete or partial elimination of several tariffs associated with customs duties for exports to Switzerland. The aim was to make it more advantageous and cost-effective for the average Swiss citizen and to attract interest from foreign companies that have not yet tapped into the Swiss market.
However, nothing comes without a cost, and the considerable revenue loss from the partial removal of import duties had to be compensated somewhere else. That somewhere else turned out to be the VAT, as it was relied upon to make up for the shortfall in customs duties.
As shown in the right column, the general standard rate is set to increase from 7.7% to 8.1%, leading to a direct increase in costs by 5.2% for the most common goods and services in Switzerland.
If you were to ask the average Swiss citizen, they would probably prefer to retain the existing customs and VAT rates rather than face an additional 5.2% charge on top of the inflation of the past year.
For those already operating in Switzerland, it is EXTREMELY important to update your website, webshop, and financial systems to accommodate the new rates effective from January 1, 2024.
If you have not yet ventured into the Swiss market, you can find more information here: Switzerland.
Remember, you can always call or write to us if you have any questions about cross-border trade.
| Rate | Categori | Name | Registration limit |
| 7,7 % | Standard products and services | Standard | CHF 100.000 |
| 3,7 % | Accomodation | Special | CHF 100.000 |
| 2,5% | Certain products, prints, pharmaceuticals | Reduced | CHF 100.000 |
| 0% | Education, insurances, and financial services | Exempt | CHF 100.000 |
| Rate | Categori | Name | Registration limit |
| 8,1 % | Standard products and services | Standard | CHF 100.000 |
| 3,8 % | Accomodation | Special | CHF 100.000 |
| 2,6% | Certain products, prints, pharmaceuticals | Reduced | CHF 100.000 |
| 0% | Education, insurances, and financial services | Exempt | CHF 100.000 |
