The Swiss federal government plans to increase VAT by 0.8 percentage points over a decade (2028‑2038) to raise CHF 31 bn for defence. The proposal requires a constitutional amendment, a new armaments fund law, and a national referendum in summer 2027. Consultation ends in May, with only the Centre party supporting the measure.
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VatCalc · 25 days ago
Switzerland is considering legislation to extend the 3.8% reduced VAT rate for hotel accommodation until 1 January 2036, while the standard rate is set to rise to 8.8% in 2026. The current reduced rate expires on 1 January 2028 unless extended, and the Federal Assembly recently blocked any increase beyond 3.8%.
VatCalc · 3 months ago
Switzerland is considering a 0.8 percentage‑point increase in its standard VAT rate from 8.1% to 8.9% to raise about CHF 31 billion for defence spending over ten years. The proposal, announced by the Federal Council in January 2026, would need parliamentary approval and a 2027 referendum. A separate 0.7 percentage‑point VAT rise to 8.8% for pension reforms was approved in April 2024 and is expected to take effect on 1 January 2028, pending a 2027 referendum.
Meyka · 4 months ago
On 12 February 2026 the Swiss Federal Supreme Court ruled that Chalet AG, a single‑asset company holding a St Moritz chalet, was used to avoid VAT and ordered repayment of CHF 865,000 in input‑tax credits. The decision clarifies that private‑use assets cannot claim broad VAT input credits and signals stricter scrutiny of form‑over‑substance structures in Switzerland.
Le News · 4 months ago
Switzerland’s Federal Council proposes a temporary 0.8‑percentage‑point increase in VAT to raise CHF 31 billion over ten years, aimed at funding a substantial rise in defence spending. The detailed proposal is due in March, with voters expected to decide in summer 2027 and the hike taking effect in 2028.
Politico · 4 months ago
Switzerland will temporarily increase its VAT rate by 0.8 percentage points from 8.1% to 8.9% starting in 2028 for a decade to raise about 31 billion Swiss francs for defense spending. The change requires a constitutional amendment and a public consultation in spring, and the extra revenue will feed an armament fund with borrowing capacity.
Cumbria Crack · about 16 hours ago
The UK government’s Great British Summer Savings initiative introduces a temporary VAT reduction from 20% to 5% on certain children’s meals and family-focused activities from 25 June to 1 September 2026. Businesses must identify qualifying supplies, review pricing, adjust bundled offers, and update booking and accounting systems to manage mixed VAT treatments and potential advance‑booking adjustments.
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Key Takeaways
The VAT rise will be phased in gradually between 2028 and 2038.
The increase is projected to generate CHF 31 bn for defence and security.
It requires a constitutional amendment, a new armaments fund law, and a national referendum in summer 2027.
The fund may borrow up to CHF 6 bn, but all borrowing must be repaid by the end of the temporary VAT increase.
Only the Centre party has publicly backed the proposal.
Primary source
Read the full article at Le NewsThis summary was published on VATfaqs.com on 7 March 2026. It relates to VAT developments in Switzerland. The original source is Le News.
