2024: VAT rates increase

In a referendum held on 25 June 2022, the Swiss people decided to increase the rates of Value Added Tax in order to finance the AHV (Old Age and Survivors’ Insurance). The Federal Council has set the new rates to come into force on 1 January 2024.

As a result, the standard rate of VAT applied to most goods and services will rise from 7.7% to 8.1%.

The reduced rate rises from 2.5% to 2.6% and mainly concerns essential goods such as foodstuffs, takeaways, medical services and newspapers.

For companies working in the accommodation sector, the special rate applied to overnight stays and breakfasts will rise from 3.7% to 3.8%.

VAT rates increase in your accounts

To find out which VAT rate applies, you need to know which financial year the service is being provided. If it is in 2023, the old rate will apply. If it’s in 2024, the new rate will apply. Therefore, a service invoiced at the end of 2023 for the period 2024 will have to be at the new rate.

If the service straddles 2023 and 2024, the billing should be split between the two financial years in order to apply the appropriate rate to the 2023 and 2024 portions.

You then need to take this into account in your chart of accounts.

In the 2023 and 2024 financial years, where the rates overlap, it is worth duplicating the accounts subject to VAT to take account of the different rates.

For subsequent financial years, it is only necessary to maintain the current rates in force.

Changing VAT rates in MacCompta Pro is very simple. In the Chart of Accounts, simply double-click on the line of the account to be corrected, change the rate in the edit line, then save the changes.

Any questions? Please do not hesitate to contact us.