Switzerland – Proposed VAT rate changes delayed

The Swiss government’s proposed increase of the standard Value Added Tax (VAT) rate from 8.1% to 8.8%, initially planned for January 2026, is now likely to be delayed until January 2028. This decision follows recent legislative challenges and is intended to fund the introduction of a 13th monthly pension payment.

While the Swiss cabinet approved a draft decree for the VAT increase in October 2024, it was unable to get parliamentary approval for a January 2026 implementation.