Switzerland’s New Value Added Tax Rates

It seems that since the beginning of 2024, all we have been bringing you is information on price increases, and this post is no exception! Starting January 1, 2024, Switzerland raised their “Mehrwertsteuer” (value added tax; VAT) rates. This increase was voted in by the population in a public referendum that took place on September 25, 2022. Switzerland has three different VAT rates for various goods and services (also see https://www.estv.en/home/value-added-tax/va-rates-switzerland.html):

Several goods and services are exempt from VAT entirely in Switzerland. These include postal services, healthcare and welfare services, cultural services (eg, museums, libraries), education and supplies in the field of education and training, sports and sports competitions, and insurance, but also betting, gaming, and lotteries.

It is important to note that even despite this recent increase, the new standard Swiss VAT rate is still far lower than those in the member countries of the European Union or the U.K. For example, rates are 19% in Germany; 20% in France, Austria, and the U.K.; 22% in Italy; 24% in Finland; and a whopping 25% in Sweden, Norway, and Denmark!