Government: 0.5 percentage point increase over 12 years (cross-border guide)

Context

In a nutshell

• The VAT increase of 0.5 percentage points will be applied from 2028 and for a period of 12 years.
• The normal rate (8.1%) will temporarily increase by 0.5 percentage points, while the special rate (3.8%) will be increased by 0.3 percentage points.
• The reduced VAT rate (now 2.6%) will not be adjusted.

Key facts

• What: VAT increase
• When: 2028
• Where: Switzerland
• Who: Swiss Government
• Amount: 0.5 percentage points

The Swiss Government has maintained the proposal of a 0.5 percentage point increase in VAT for a period of 12 years. This increase will be applied from 2028 and will be used to finance the country's defence.

The Federal Council has decided to maintain the proposal for a temporary increase in VAT, in order to strengthen the country's security and defence.

The increase in question, to the extent of 0.5 percentage points, would be applied from 2028 and for a period of 12 years. This means that, from 2028, the normal VAT rate will rise from 8.1% to 8.6%, while the special rate will rise from 3.8% to 4.1%.

The choice is motivated by the deterioration of Switzerland's geopolitical situation and the savings measures of recent years, which have created critical issues for the army. In particular, the Swiss Government cited the threat of aggression by some neighbouring countries and the need to strengthen the country's defence.

According to the Government's estimates, the VAT increase of 0.5

Operational details

Practical Implications

The VAT increase of 0.5 percentage points will be applied from 2028 and for a period of 12 years. This increase will be used to finance the defence of the country and will be applied to all transactions that are currently subject to the normal rate of 8.1%.

The special rate of 3.8% will be increased by 0.3 percentage points, while the reduced rate of 2.6% will not be adjusted.

Concrete examples

• A citizen of Zurich who buys a 5 CHF coffee in central Zurich will pay 0.5 CHF more VAT (8.1% + 0.5% = 8.6%) than the previous rate of 8.1%.
• A Bernese merchant selling a product for CHF 100 will pay CHF 8.1 VAT (normal rate) plus the other CHF 0.5 VAT (0.5% of the sales price), for a total of CHF 8.6 VAT.
• A tourist who buys a plane ticket from Geneva for CHF 200 will pay CHF 16 VAT (8.1% of the purchase price) plus the other CHF 1 VAT (0.5% of the purchase price), for a total of CHF 17 VAT.

References to Swiss cantons or cities relevant to the topic

• The city of Zurich, with a population of around 430,000, will be one of the main destinations of the new VAT rate.
• The Canton of Bern, with a population of around 1.1 million, will be one of the main beneficiaries of the new VAT rate.
• The city of Geneva, with a population of around 203,000, will be one of the main destinations of the new VAT rate.

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Key points

Government: 0.5 percentage point increase over 12 years

The VAT increase of 0.5 percentage points will be applied from 2028 and for a period of 12 years. It is important for Swiss citizens to understand the implications of this increase and how they can prepare to deal with it.

What to do

• Check your tax situation and make sure you are prepared for the VAT increase.
• Consider reducing non-essential expenses to reduce the impact of the VAT increase.
• Make sure you are informed about the new taxation rates and adapt to the new rules.

Concrete examples

• A citizen of Zurich who spends 5,000 CHF per month on their household could see an increase of 250 CHF per month (0.5 percentage points out of 50,000 CHF).
• A Geneva entrepreneur earning CHF 100,000 per year could see an increase of CHF 5,000 per year (0.5 percentage points out of CHF 1,000,000).

Regulatory references

• The VAT increase was announced in 2022 and will be applied from 2028, as established by the federal law of 23 June 2022.
• Federal law states that the VAT increase will be applied for a period of 12 years, starting in 2028.

Operational Checklists

• Check your tax situation and make sure you are prepared for the VAT increase.
• Reduce non-essential expenses to reduce the impact of the VAT increase.
• Make sure you are informed about the new rates of

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.

Source: rsi.ch