Fiscal Adaptation in 2024: New VAT Rates and Strategic Advice for Businesses In 2024

Effective from January 1, 2024, the rise in Value Added Tax (Swiss VAT) stems from the Swiss people’s approval in September 2022 for the AVS law amendment. This increase manifests in a significant rise in the normal rate from 7.7% to 8.1% (+0.4 points).

Adjustments also impact the reduced rate, increasing from 2.5% to 2.6%, and the special rate for accommodation, rising from 3.7% to 3.8%. In this context, MY SWISS COMPANY – a corporate services provider in Switzerland advises businesses to carefully analyze sectors and products that may require pricing adjustments to absorb this new tax burden. Strategies such as short-term offers, discounts, and price reductions are viable to mitigate the impact on clientele.

Adhering to the timeline is crucial to ensure compliance with the law, as neither the invoicing date nor the payment date determines the applicable tax rate. Adapting to the new rates also involves essential updates within accounting systems and business processes. Special attention must be given to tax documentation to ensure accurate recording of all transactions, including invoices, receipts, and other records, thereby simplifying the work of tax authorities.

Finally, a review of existing contracts with clients, suppliers, and service providers is necessary to assess the need for price renegotiation.

Contact us to initiate your initial consultation now. We would be delighted to get to know you and define the next steps to appoint the VAT fiscal representative for your company in Switzerland.

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