Switzerland – VAT rates increase

The Swiss parliament approved a plan to raise the standard VAT rate from 8.1% to 8.5%. This tax hike is designed to help pay for a new 13th monthly state pension, but it will only take effect in 2028 and must first pass a public referendum in late 2026. Under approved measures:

– standard VAT rate will increase by 0.4% from 2028 (from 8.1% to 8.5%)
– special VAT rate for the hotel industry will increase by 0.2% (from 3.8% to 4.0%)
– reduced VAT rate applied for example to food and medicine will remain unchanged at 2.6%

This VAT increase is not yet final and requires referendum, which is expected in November 2026.