Increase in value-added tax to provide for old age in 2020 (Council of States and National Council agree to the proposal of the Settlement Conference)
The 2020 pension reform has been adjusted and is ready for the final vote on 17 March 2017. The increase in value-added tax (VAT) was particularly controversial (cf. our contribution of 3 March 2017).
Overview of amendments to laws and ordinances in tax law as of 1 January 2017
The Federal Tax Administration (FTA) has published an updated list of amendments to laws and ordinances relating to direct federal tax, value added tax, withholding tax and stamp duties.
Increase in value added tax for retirement provision 2020 (Follow up)
The 2020 pension reform stands and falls above all with the increase in value-added tax (VAT), which is the subject of the settlement of differences between the Council of States and the National Council in the parliamentary spring session of 2017. The aim is to bring the reform to the final vote in the current session.
National Council adopts a motion concerning no VAT on subsidised tasks
The National Council adopts a motion at its meeting of 8 March 2017 instructing the Federal Council to propose to Parliament an amendment to the Value Added Tax Act (VAT Act).
Approval of the Agreement on the Tax Regime at Basel-Mulhouse Airport
On 25 January 2017, the Swiss Federal Council approved the agreement between Switzerland and France on the tax regime at Basel-Mulhouse airport and an agreement on compensation for the costs incurred by the French air traffic control authority in the Swiss sector (media release of 25 January 2017). The VAT derogation requested by France has since been approved by the Council of the European Union (implementing Decision 2017/320 of 21 February 2017).
Increase in value-added tax for pension provision 2020 (subject of the adjustment of differences in the spring session 2017)
The 2020 pension reform stands and falls above all with the increase in value added tax. This is the subject of the settlement of differences between the Council of States and the National Council in the parliamentary spring session 2017.
Development of VAT rates as from 1 January 2018
The increase in VAT rates introduced in 2011 for the purpose of IV supplementary financing expires at the end of 2017. It remains to be seen whether VAT rates will fall. The current VAT rates are to be retained in order to close the financing gap in the AHV. This, however, requires a referendum, the outcome of which is open.
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