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.
Implementation could occur in January 2028, subject to parliamentary approval and a 2027 referendum.
The standard VAT rate would rise to 8.9% from 8.1%.
The proposal is expected to raise approximately CHF 31 billion over ten years.
Approved by voters in April 2024, it is expected to take effect on 1 January 2028 pending a 2027 referendum.
It is expected to generate about CHF 4.2 billion in additional annual revenue.
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Le News · 11 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.
Meyka · about 1 month ago
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.
Le News · about 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 · about 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.
VatCalc · about 6 hours ago
Denmark is transitioning its NemHandel e‑invoicing system from the domestic OIOUBL format to the Peppol BIS standard, with full migration targeted for mid‑2029. The shift aligns with the 2030 VAT in the Digital Age reforms that mandate e‑invoicing for intra‑community transactions and supports the ViDA Digital Reporting Requirements. Businesses will need to adapt to a phased coexistence period before Peppol BIS becomes the dominant format.
Vatvocate · about 10 hours ago
The Xyrality case (C‑459/24) clarifies that e‑commerce platforms can be treated as suppliers for VAT purposes, meaning VAT is due on the full transaction amount, not just the platform fee. The ruling confirms that Article 28 creates a deemed supply chain when an intermediary acts in its own name but on behalf of the actual provider, and that Article 9a’s presumption cannot be rebutted if the platform authorises the charge, delivers the service, or sets the general terms. Platforms dominating the customer relationship must therefore reassess their VAT obligations.
