Switzerland: Proposal for temporary increase in VAT rates
The proposed temporary increase would finance priority defense expenditure for a 12-year period starting in 2028.
The Swiss Federal Council on August 12, 2026, adopted a dispatch proposing a temporary increase in VAT rates to finance priority defense expenditure.
The proposal would increase the standard VAT rate by 0.5 percentage points and the special rate by 0.3 percentage points, while leaving the reduced rate for items such as food and medicines unchanged. The temporary increase would become effective from 2028 and last for 12 years. The temporary increase could not be extended beyond the 12-year period without another referendum.
For more information, contact a KPMG tax professional in Switzerland:
Michaël Vincke | michaelvincke@kpmg.com