Switzerland will hold a public referendum on a proposal to increase its VAT rates on November 29th, 2026. The proposal would increase the standard VAT rate by 0.4% to 8.5% and increase the special rate for accommodation services by 0.2% to 4%. The reduced rate of 2.6% would be unaffected. If passed the VAT increase would be scheduled to come into effect in 2028. More information on the referendum can be found on the Swiss Federal Council’s website.
Separately, the VAT Act was recently amended to extend the application of a special VAT rate on accommodation services through 2031. The rate was previously set to expire at the end of 2027.
