We all know the existing VAT percentage : 8% as the "ordinary" level, the special "hotel" level 3.8% and the "reduced" level of 2.5% which is applied to day-to-day goods such as food, drinks, books, medicine and to public cultural and sports events.
Reduced level for 2018
Starting 1st January 2018, the ordinary level will be lowered to 7.7%, the hotel level to 3.7%. The lower "reduced" level of 2.5% will remain unchanged.
Important : date of delivery
As a consequence, companies will have to adjust their billing and this is the opportunity to remind that it is the date of delivery of the services that determine the VAT percentage and not the date of billing. So, for relocation (and service related companies) delivering "package of services" between end 2017 and beginning 2018, one will have to separate the part of services that are delivered in 2017 (taxed at 8%) and those services delivered in 2018 (taxed at 7.7%), even if all services are invoiced in the course of January 2018.
For further technical details, companies can log onto the tax department websites, such as www.estv.admin.ch (information spécialisée - taxe sur la valeur ajoutée).
This is viewed as a factor that will strengthen Switzerland's attractiveness in comparison to other European countries' normal VAT level such as France 20%, Italy 22%, UK 20%, Irlande 23%, Autriche 20%, Portugal 23%, Espagne 21%, Belgique 21%, Danemark 25%. Only Germany is at 19%. And only Hungary is at 27% !