On Sunday, 24th September 2017, the Swiss citizens rejected a project to change one of the social security laws at the ballot box in a national referendum. VAT rates are directly affected through this referendum and will be reduced as from 1st January 2018.

Some years ago, the voters decided to increase the VAT rates in order to help refinancing the disability insurance system. This refinancing period ends by the end of 2017. As a thin majority of voters has not accepted the proposed project by the Parliament, the rates will fall back by 0.4% points to the level prior to the refinancing period. On the other hand, the voters have decided during an earlier referendum to increase the VAT rate by 0.1% points in order to refinance the railway infrastructure of the country. Here below you will find the rate as of 1st January 2018:

Ordinary
rate
Special
rate
Reduced
rate
Today’s rates8.00%3.80%2.50%
– end of disability insurance refinancing 31.12.2017– 0.40%– 0.20%– 0.10%
+ increase of railway infrastructure 01.01.2018 – 31.12.2030+ 0.10%+ 0.10%+ 0.10%
New rates as of 01.01.20187.70%3.70%2.50%