As of January 1, 2024, the new tax rates approved in the September 25, 2022 vote took effect in Switzerland.

Starting the new year, the following VAT rates are applied in the Swiss Confederation:

Normal rate: 8.1 %

All taxable benefits that are not taxable at the special rate or reduced rate should be taxed at the normal rate.

Reduced rate: 2.6 %

Tax shall be levied at the reduced rate of 2.6 % on the counter-performance (and import) for the following goods:

• piped water (exception: sewage treatment [supply of services] is taxable at the standard rate);
• foodstuffs and additives;
• livestock, poultry;
• fish and other animals for food purposes cereals;
• seeds, bulbs and onions for transplanting, live plants, cuttings, grafts, cut flowers and branches, including in arrangements, bunches, wreaths and the like;
• animal feed and litter, silage acids;
• fertilizers, plant protection products, mulching materials and other plant cover materials;
• medicines (Article 49 OIVA);
• newspapers, magazines, books and other printed matter without advertising character (Art. 50-51 OIVA; advertising character: Art. 52 OIVA);

The reduced rate is also applicable to:

• newspapers, magazines and electronic books with no advertising character (Art. 51a and 52 OIVA);
• services of radio and television companies, except those of a commercial nature (e.g., advertising);
• services in the field of agriculture consisting of direct working of the soil in connection with the production of natural products, taxable at the reduced rate (e.g., sowing, plowing, harrowing, fertilizing, spraying fruit plants, vines or vegetables), which in turn serve primarily for human consumption or as food and litter for animals, as well as the processing of similar soil products (e.g., haymaking, reaping and harvesting of vegetables, vegetables and fruits);
• services (turnover figures) excluded from taxation in accordance with Article 21 Paragraph 2 Nos. 14-16 LIVA, provided they have opted for their taxation in accordance with Article 22 LIVA.

In case of an option, farmers, foresters and horticulturists tax the supplies of their farm products at the determining tax rate. The same applies to livestock dealers for livestock sales and milk collection centers for milk deliveries to processors.

Special rate for the hotel sector: 3.8 %

The special rate of 3.8 % for hotel sector services is applicable to accommodation services with breakfast, even if this is billed separately.