On 12 February 2026 the Swiss Federal Supreme Court ruled that Chalet AG, a single‑asset company holding a St Moritz chalet, was used to avoid VAT and ordered repayment of CHF 865,000 in input‑tax credits. The decision clarifies that private‑use assets cannot claim broad VAT input credits and signals stricter scrutiny of form‑over‑substance structures in Switzerland.
It ruled that Chalet AG, a single‑asset company mainly used for private purposes, could not claim broad VAT input‑tax credits and ordered repayment of CHF 865,000.
The decision was made on 12 February 2026.
It signals stricter scrutiny; Swiss VAT authorities can deny or recover credits if the asset is used for private purposes, and audits may focus on evidence of economic activity and fair‑market pricing.
They should document usage, segregate private use, apply fair‑market rents, pro‑rate VAT recovery, and seek advance tax rulings to align structure with real use.
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Le News · 28 days ago
The Swiss federal government plans to increase VAT by 0.8 percentage points over a decade (2028‑2038) to raise CHF 31 bn for defence. The proposal requires a constitutional amendment, a new armaments fund law, and a national referendum in summer 2027. Consultation ends in May, with only the Centre party supporting the measure.
VatCalc · about 1 month ago
Switzerland is considering a 0.8 percentage‑point increase in its standard VAT rate from 8.1% to 8.9% to raise about CHF 31 billion for defence spending over ten years. The proposal, announced by the Federal Council in January 2026, would need parliamentary approval and a 2027 referendum. A separate 0.7 percentage‑point VAT rise to 8.8% for pension reforms was approved in April 2024 and is expected to take effect on 1 January 2028, pending a 2027 referendum.
Le News · 2 months ago
Switzerland’s Federal Council proposes a temporary 0.8‑percentage‑point increase in VAT to raise CHF 31 billion over ten years, aimed at funding a substantial rise in defence spending. The detailed proposal is due in March, with voters expected to decide in summer 2027 and the hike taking effect in 2028.
Politico · 2 months ago
Switzerland will temporarily increase its VAT rate by 0.8 percentage points from 8.1% to 8.9% starting in 2028 for a decade to raise about 31 billion Swiss francs for defense spending. The change requires a constitutional amendment and a public consultation in spring, and the extra revenue will feed an armament fund with borrowing capacity.
FE Week · about 14 hours ago
The Court of Appeal has ruled in favour of Colchester Institute in a VAT dispute with HMRC, allowing the college to reclaim VAT on pre‑2010 capital projects. The decision could extend to an estimated 20‑30 other colleges and raises uncertainty for charities that may lose VAT discounts. The ruling centres on the Lennartz mechanism, which HMRC had withdrawn in 2010.
Deloitte Malta · 1 day ago
Malta’s Value Added Tax Act will be amended by amendment 86 of 2026, taking effect on 1 October 2026, to narrow the VAT exemption for gambling and betting services. The changes are expected to improve VAT recovery for B2C operators and certain B2B providers, with detailed guidelines to follow.
