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.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
Meyka · 14 days 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 · 27 days 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 · 28 days 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.
UK GOV · about 8 hours ago
The UK guidance explains the special procedure for outward processing, which allows goods to be temporarily exported from the UK for repair or processing. It outlines the rules, application process, authorisation, and duty calculation for such movements, covering both the UK and EU/Northern Ireland contexts.
Essential Business · about 16 hours ago
Portugal’s Parliament has approved a 6% VAT rate on new residential housing construction for primary permanent residences, effective 1 January 2026. The measure applies to projects with procedural initiatives between 25 September 2025 and 31 December 2029, and includes conditions on residence duration and penalties for non‑compliance. Self‑build projects and investment contracts for lease also benefit from partial VAT refunds.
Shared Services Link · 1 day ago
Irish Revenue has clarified the implementation schedule and scope for the B2B e‑invoicing and real‑time reporting regime under the ViDA reforms. The phased rollout begins in November 2028 for large corporates, expands to all VAT‑registered businesses in intra‑EU trade by November 2029, and covers all cross‑border B2B transactions from July 2030. Large corporates must issue structured e‑invoices and report key data, while all VAT‑registered businesses must be technically capable of receiving structured e‑invoices.
