Value added tax
VAT is a tax on the consumption of goods and services; the taxable business adds it to its supplies, deducts the input tax paid on its purchase invoices, and remits the difference to the Federal Tax Administration.
Definition
For the business it is therefore in principle not a cost factor but a pass-through — but a pass-through with deadlines, forms and liability. The costs arise in administration and wherever input tax deduction is not permitted.
Three rates apply in Switzerland: the standard rate of 8.1 per cent, the reduced rate of 2.6 per cent for food, books and medicines, and the special rate of 3.8 per cent for accommodation. Whoever sells both — takeaway food and consumption on the premises — has to carry both rates.
The numbers
- 8.1%
- standard rate, in force since 1 January 2024 FTA
- 2.6%
- reduced rate for food, books, medicines FTA
- 3.8%
- special rate for accommodation FTA
Where to read it
What the software must be able to do
Software for Switzerland has to carry all three rates, assign tax codes per item and account, and output the return in the official form. Programs from abroad regularly fail on the special rate and on a rate change mid-year.
Checked Aug 2026
More terms under VAT and customs: Acquisition tax Customs declaration Effective method Exempt supplies Flat-rate VAT method Input tax Margin taxation Non-consideration Own use Place-of-recipient rule Reduction of consideration Takeaway 2.6 vs. eat-in 8.1 VAT 3.8 % accommodation VAT 8.1 / 2.6 / 3.8 % VAT liability