The change in VAT rates on January 1, 2018 will be technically implemented by means of an ordinance. At its meeting on November 8, 2017, the Federal Council brought a corresponding ordinance and an amendment to the ordinance into force on January 1, 2018.
According to a press release issued by the FTA on 8 November 2017, as of 1 January 2018, 0.4% of VAT will be abolished in favour of the disability insurance scheme, while 0.1% of VAT will be added in favour of the railway infrastructure (FABI). For the technical implementation of these tax rate changes, the Federal Council has adopted a new ordinance and an amendment to the ordinance.
From 1 January 2018, the rates of VAT will be 7.7% (standard rate), 3.7% (accommodation rate) and 2.5% (reduced rate). For the background to the change in VAT rates, see our contribution of 1 October 2017 and our contribution of 24 September 2017.
