September 26 2022

Swiss Voters Approve State Pension Reform and VAT Rate Increase

Source: IBFD Tax Research Platform News

In a federal referendum held on 25 September 2022, Swiss voters approved the revision of the state pension (AHV 21). Key elements of the revision include:

  • the unification of the official retirement age of 65 for men and women;
  • an increase of the general VAT rate by 0.4% to 8.1%;
  • an increase of the reduced VAT rate for daily goods and services by 0.1% to 2.6%; and
  • an increase of the VAT rate for lodging services by 0.1% to 3.8%.

An increase in the VAT rates is required to stabilize the financing of the state pension until the year 2030. It is expected that the revision will enter into force on 1 January 2024.