From 1 January 2024, the standard VAT rate in Switzerland increased from 7.7% to 8.1%, the reduced rate from 2.5% to 2.6%, and the special rate for accommodation from 3.7% to 3.8%. These changes, approved by popular vote in September 2022, fund the restructuring of the AHV/AVS pension system.
For importers, the VAT increase translates into a higher outlay at the time of customs clearance. Import VAT is calculated on the CIF value of the goods (cost + insurance + freight) plus any customs duties applied. With the rate at 8.1%, the tax burden on imports increases significantly.
For Swiss exporters, export supplies remain exempt from VAT (0% rate), but it is essential that customs documentation is impeccable in order to benefit from the exemption. Errors in customs declarations or documentation can result in the loss of the right to exemption.
The inward and outward processing regime, particularly used in the watchmaking industry and the machinery sector, must be managed with particular care to avoid double taxation. Franzosini SA offers specialised advisory for the optimisation of these regimes.