Swiss VAT Rates 2025-2026: Everything You Need to Know

If you're running a business in Switzerland, understanding VAT rates isn't optional—it's essential. The good news? We've broken down everything you need to know about Swiss VAT rates, the major 2025 law changes, and how to stay compliant.

Current Swiss VAT Rates (2025-2026)

As of January 1, 2024, Switzerland applies three VAT rates that remain in effect through 2026:

These rates increased from their previous levels (7.7%, 2.5%, and 3.7%) following the September 2022 referendum on strengthening Switzerland's AHV (Old Age and Survivors' Insurance) system.

Standard Rate: 8.1% - Practical Example

The standard rate applies to most commercial activities including professional services, electronics, clothing, and restaurant meals.

Example: If you invoice a client CHF 1,000 for consulting services, you'll charge CHF 1,081 total (CHF 1,000 + CHF 81 VAT).

Reduced Rate: 2.6% - What's Included

Switzerland applies the reduced rate to essential items like food, books, medications, and agricultural products.

NEW in 2025: Menstrual hygiene products now qualify for the reduced rate.

Example: A grocery bill of CHF 100 includes just CHF 2.60 in VAT.

Special Rate: 3.8% - Tourism Support

The accommodation rate covers overnight stays including hotel rooms with breakfast, holiday apartments, and bed and breakfasts. This favorable rate supports Switzerland's vital tourism industry.

Registration Thresholds

You must register if your annual turnover exceeds:

• CHF 100,000 for standard businesses
• CHF 250,000 for non-profit sports, cultural clubs, or charitable organizations

Important: This threshold is global. Foreign companies must count worldwide turnover, not just Swiss sales.

The 30-Day Rule

Once you exceed the threshold, you have 30 days to register with the Federal Tax Administration. Missing this deadline can result in penalties and backdated VAT obligations.

Voluntary Registration

You can voluntarily register even below CHF 100,000. This makes sense if:

• You have significant input VAT to reclaim (equipment, software, services)
• Your clients are VAT-registered businesses (B2B)
• You want to appear more established

Trade-off: Administrative burden increases, and you'll charge VAT on all supplies.

How to Register: Step-by-Step

1. Gather Required Documents

• Business registration documents
• Financial projections
• Bank account details
• Personal identification

2. Access the E-Portal Visit the Federal Tax Administration's website and create credentials.

3. Complete the Application Provide business details, estimated turnover, and activity description.

4. Appoint a Fiscal Representative (If Foreign) Non-Swiss businesses must designate a Swiss-based representative who assumes joint liability.

5. Wait for Your VAT Number Processing typically takes 4 weeks. You'll receive a UID (enterprise identification number) formatted as CHE-XXX.XXX.XXX MWST.

Invoice Requirements: Get It Right

Your invoices must include these elements to be VAT-compliant:

1. Your name and address
2. Your Swiss VAT number (CHE-XXX.XXX.XXX MWST)
3. Customer's name and address
4. Invoice date and unique number
5. Description of goods or services
6. Net amount, VAT rate, and VAT amount
7. Gross total

Example invoice footer:

Subtotal: CHF 1,000.00
VAT 8.1%: CHF 81.00
Total: CHF 1,081.00

Our VAT number: CHE-123.456.789 MWST

For exempt or zero-rated supplies, state the legal basis: "VAT-exempt according to Article 21 MWSTG."

Reclaiming Input VAT

Here's the silver lining of VAT registration: you can reclaim VAT paid on business expenses.

What You Can Deduct

• Office supplies and equipment
• Professional services (accounting, legal)
• Business software subscriptions
• Travel and accommodation (business-related)
• Marketing and advertising

What You Cannot Deduct

• Private/personal expenses
• Purchases related to VAT-exempt supplies
• Entertainment costs (partially restricted)
• Company cars (partial restriction applies)

Keep receipts for 10 years. Swiss law requires you to retain all VAT-related documents for a decade.

Future Changes: What's Coming

Switzerland approved VAT rate increases, but implementation is delayed until 2028:

• Standard rate: 8.1% → 8.8%
• Accommodation rate: 3.8% → 4.2%
• Reduced rate: 2.6% → 2.8%

While these changes won't affect you immediately, start planning for price adjustments and customer communications.

Stay Compliant, Stay Confident

Swiss VAT regulations are comprehensive, but they're manageable with the right knowledge and tools. Remember:

• Register within 30 days of crossing CHF 100,000
• Use the correct rate for each product or service
• File returns on time (60-day deadline)
• Keep records for 10 years
• Stay updated on changes (like the 2025 reforms)

The Swiss Federal Tax Administration provides excellent resources at estv.admin.ch. When in doubt, consult a tax professional familiar with Swiss regulations.

Last updated: January 2025 | We update this guide regularly to reflect the latest regulations and rates.