Starting from 1 January 2026, Switzerland provides for an increase in the value added tax (VAT) of 0.7 percentage points to finance the introduction of the thirteenth AVS income, approved by the Swiss voters.

Current VAT rates (from 1 January 2024):

• Normal rate: 8,1%
• Reduced rate: 2,6%
• Special rate for the hotel sector: 3,8%

Projections for VAT rates from 1 January 2026:

• Normal rate: 8,8%
• Reduced rate: 3,3%
• Special rate for the hotel sector: 4,5%

The increase in VAT has been proposed to guarantee the financial sustainability of the AVS, with estimated costs of about 4.2 billion francs in 2026 for the thirteenth annuity.

It is important to note that these changes are subject to parliamentary approval and may change. Companies and professionals are recommended to remain updated on legislative evolutions to ensure compliance with new tax regulations.