In order to help finance the Swiss retirement system VAT rates are increasing from 1 January 2024. From a Swiss accounting perspective this entails certain points that need to be considered for entities that charge Swiss VAT. It will be important to consider whether the old or the new rate will need to be charged under difference circumstances.

For Swiss VAT it is the time at which the service or good is supplied that determines whether VAT is to be charged. This means that if a service that is to be provided in February 2024 is already invoiced in October 2023 the new rate will need to be applied when the invoice is issued. Similarly, if an invoice is issued in January 2024 for services rendered in 2023 then the old rate will need to be applied. In every situation the rate of VAT needs to be shown on the invoice (as well as the VAT number).

The rate changes are as follows:
Normal rate increases from 7.7% to 8.1%
The special rate for lodgings increases from 3.7% to 3.8%
The reduced rate increases from 2.5% to 2.6%