Increase in VAT rate from 2024 onwards

As a result of the Sept. 25 vote, the standard VAT rate will increase to 8.1 percent, the special rate for lodging will rise to 3.8 percent and the reduced rate will now be 2.6 percent. It is planned to come into force on 01.01.2024.

Even though Switzerland is a small country, it has some of the highest purchasing power in the European online retail market. Inflation has also remained within limits to date. However, Switzerland has now announced that the sales tax will be increased as of 01.01.2024.

What does that mean in concrete terms?

Currently the Switzerland two tax rates: (1) the standard rate of 7.7% which will be increased to 8.1% as of 01.01.2024. This standard rate applies to most online products. (2) the reduced tax rate of 2.5% which will be increased to 2.6% as of 01.01.2024, but only applies to a few products such as food.

Why is it increasing sales tax?

The aim of the increase is to protect the pension insurance.

Are all online retailers selling products to Switzerland affected by the increase? We will explain it to you with an example.

You are an online retailer in Germany that delivers from Germany to Switzerland? The delivery is an export delivery and exempt from VAT. For this purpose, you can have the sales tax from the purchase of goods refunded as input tax. However, you must keep in mind that Switzerland is not part of the European Union, and therefore the Swiss VAT is not valid in Switzerland.expensive law is applied. This means that import sales tax is payable in Switzerland.

Conclusion

Switzerland is an attractive market for online retail. However, before you start trading online to Switzerland, you should inform yourself about the sales tax and customs processes. We are happy to help you. Schedule your consultation here now.