As of January 1, 2024, the new VAT rates will come into force in the course of the adoption of the VAT revision. The increase in the rates should contribute to stabilizing the AHV in the sense of supplementary financing.
The changes at a glance:
- The standard rate will rise from 7.7% to 8.1%
- The special rate will rise from 3.7% to 3.8%
- The reduced rate will rise from 2.5% to 2.6%
This raises the question of the time of the tax rate adjustment. It is not based on the date of invoicing or receipt of payment, but rather on the time at which the service is actually delivered. A service is deemed to have been delivered when all the constituent elements of the service have been fulfilled.
This focus on the time at which the service is rendered is increasingly giving rise to questions in practice. In principle, services rendered before January 1, 2024 are taxable at the previous (lower) tax rates, while services rendered after December 31, 2023 are subject to the new tax rates. Services provided in part after the entry into force of the VAT Act are taxable at the new rates for this part. It is therefore particularly important to check those contracts that have not been executed within one year.
Companies should already be planning the necessary steps to ensure a smooth changeover. If you have any questions or need support, Stach Rechtsanwälte AG is at your disposal.
Senior Partner
kummer@stach.ch
+41 (0)71 278 78 28
