VAT in Switzerland – how does it work in 2026?

VAT in Switzerland is one of the most important indirect taxes in the country’s fiscal system. Every purchase of goods or services within the country is subject to VAT, which the seller adds to the price and then transfers to the authorities. Swiss VAT differs from what you know from European Union countries — in Switzerland the rates are lower. Swiss VAT is not an EU tax, because Switzerland is not a member of the European Union. It is its own system, regulated by Swiss law and federal tax institutions, called Mehrwertsteuer, TVA or IVA depending on the language.

What is VAT in Switzerland in 2026?

If you are wondering how much VAT in Switzerland amounts to, the answer is simple: the standard VAT rate currently stands at 8.1% for most goods and services. This means that this tax is added to most prices you see in shops or services. Compared with EU countries, this is still a low value — in Poland the standard VAT rate is 23%, and in many EU countries it is 20% or more.

VAT rates in Switzerland – details

Swiss VAT is not just one value. In 2026 three main rates apply, differing depending on the type of goods and services:

The standard VAT rate in Switzerland is 8.1%. This rate applies to most purchases: electronics, clothing, services, construction and practically everything not specifically listed in the regulations.

The reduced rate of 2.6% applies to groups of goods and services considered essential. This includes food (except alcohol), basic beverages, books, newspapers, medicines and some agricultural products. Thanks to this, these items are cheaper — as far as the tax system allows.

An additional rate of 3.8% applies mainly to hotel and accommodation services. If you stay in a Swiss hotel, guesthouse or other lodging facility, this special VAT rate will appear on your bill.

Besides these rates, in practice you may also encounter situations where the tax is treated as 0% — for example when exporting goods abroad.

Why are there different rates?

This division of VAT rates in Switzerland is not accidental. The standard rate has broad application and therefore covers almost all goods and services. Reduced rates are an attempt to ease the tax burden on everyday expenses of residents — food, medicines or literature. The special rate for accommodation services results from political decisions so that the tourism sector is not burdened with full VAT like the rest of the economy.

What counts for VAT and how is it charged?

VAT in Switzerland is added at every stage of turnover — from the producer, through the distributor, to the retailer. Ultimately it is paid by the final consumer. Entrepreneurs settling VAT may deduct the tax paid on purchases related to their business, but they must document this properly. For small companies and freelancers there is a turnover threshold above which registration for VAT is required. In Switzerland this threshold is usually CHF 100,000 per year. If your business exceeds this amount, you must register with the Federal Tax Administration and submit regular VAT returns.

Practical examples

Imagine you buy electronic equipment worth CHF 1,000. An additional 8.1% VAT will be added, so you will pay CHF 1,081. In a grocery store, for basic products such as bread or milk, VAT will be 2.6%, so on CHF 100 you pay only CHF 2.60 tax. If you book a hotel for a night, 3.8% VAT will be added to the service.

Comparison with other countries

Looking at VAT rates across Europe, it is easy to see that Swiss VAT is relatively low. In EU countries the minimum standard VAT rate must be at least 15%, and many countries apply 20–25%. Switzerland, although not part of the EU, has opted for a moderate rate intended to support consumption and business activity.

Planned changes – what is coming?

In public debate in Switzerland, proposals to increase VAT in the coming years have appeared. One reason is the intention to finance defence and security spending. Plans involve gradually increasing rates from 2028 by around 0.8 percentage points annually for a decade. This would mean VAT in Switzerland could rise, but details will depend on political decisions and possible referendums.

What does this mean for you?

If you run a business in Switzerland or plan to buy or sell products there, VAT in Switzerland is one of the elements you must consider. Reduced rates may make some goods cheaper than in EU countries, and special rules for hotels or exports may offer additional advantages. In everyday purchases, the difference between 8.1% and, for example, 20–23% VAT common in many European countries is noticeable — for both consumers and entrepreneurs.

Key information about Swiss VAT in one place

In summary, VAT in Switzerland is a tax reality worth knowing if you conduct business or frequently travel in the country.
Currently, the VAT rate in Switzerland is 8.1% for most goods and services, 2.6% for selected everyday products and 3.8% for accommodation services. Planned changes may affect tax levels in the future, but today these values apply. Understanding these rules will help you better manage costs and plan activities, both as a consumer and as an entrepreneur.