In its session of 31 May 2017, the National Council approves the decision of the Council of States to extend the special VAT rate of 3.8% for accommodation services for an initial period of 10 years and not, as envisaged in the underlying initiative, to anchor it permanently in the VAT Act. The proposal is now ready for the final vote.
The underlying parliamentary initiative of Dominique de Buman (15,410) initially demanded that the special rate of 3.8% be definitively anchored in the VAT law in future. After the consultation process, however, the Committee for Economic Affairs and Taxes of the National Council (WAK-N) had come out in favour of a limited extension of 10 years. In a statement dated 12 April 2017, the Federal Council shared the view of the WAK-N, and the Committee for Economic Affairs and Taxation of the Council of States (WAK-S) also supported the majority proposal of the WAK-N. The bill was then discussed on 4 May 2017 by the National Council, which, contrary to the majority motion of its commission, supported the definitive incorporation of the special VAT rate for accommodation services into law (for details, see our contributions of 13 April 2017 and 4 May 2017).
The Council of States then discussed the bill in its session of 30 May 2017 and, as a result, followed the majority proposals of the WAK-S and WAK-N as well as the Federal Council's proposal to extend the special rate by an initial 10 years until the end of 2027 (cf. our contribution of 30 May 2017)
In its session of 31 May 2017, the National Council now followed the majority of the WAK-N and (after the withdrawal of the minority motion) thus approved the decision of the Council of States (or a ten-year extension of the special rate until the end of 2027). The differences have thus been resolved and the bill is ready for the final vote.
According to the National Council's legislative flag of 31 May 2017, the new Art. 25 para. 4 VAT Act reads as follows:
"The tax on accommodation services is 3.8 percent (special rate). The special rate shall apply until 31 December 2020 or, if the period is extended in accordance with Article 196, paragraph 14, subparagraph 1 BV, until 31 December 2027 at the latest. The provision of accommodation, including the provision of breakfast, shall be deemed to be an accommodation benefit, even if it is charged separately."
The minutes of the parliamentary debate of the National Council on 31 May 2017 are available here.
