More recently in Switzerland, we can see how the economic measures a country enacts can have a significant effect on the VAT rates a country deploys.

In December 2021, the Swiss Parliament approved the AHV (Old Age and Survivors Insurance) 2021 reform. The measure aims to maintain AHV benefits- but this will come at a cost. Specifically, to meet additional costs for this measure, an increase in the VAT rates has been proposed.

The VAT rate increases are expected in line with the following:

• Standard rate: from 7.7% to 8.1%
• Reduced rate: from 2.5% to 2.6%
• Rate for accommodation: from 3.7% to 3.8%

A referendum is expected in autumn 2022 to approve these rates. If approved, these are expected to take place in 2023.

Tungsten Network will monitor any new tax rates, if approved, in Switzerland and ensure these are implemented as part of our portal solution.