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Switzerland is set to raise its VAT. To fund the 13th AHV pension, Parliament has decided to lift the standard rate from 8.1% to 8.5% as of 1 January 2028. It is not final yet: like any VAT increase, it amends the Constitution and must be approved by the people and the cantons, probably on 29 November 2026.
In practice, almost every VAT-registered business is affected, because the standard rate applies to most goods and services. Here is what was decided, what changes for your invoices, and the few habits to adopt before 2028. For the VAT basics, see our practical guide to Swiss VAT.
What Parliament decided
On 19 June 2026, in the final votes, both chambers agreed to raise VAT by 0.4 percentage point to help fund the 13th AHV pension. Only the standard rate goes up in full; the reduced rate on everyday essentials stays unchanged.
Swiss VAT rates before and after the increase
| Rate | Today | From 2028 | Applies to |
|---|---|---|---|
| Standard rate | 8.1% | 8.5% | Most goods and services |
| Reduced rate | 2.6% | 2.6% (unchanged) | Food, medicines, books, newspapers |
| Accommodation rate | 3.8% | 4.0% | Hotel and short-stay lodging |
Why the increase: funding the 13th pension
The 13th AHV pension, approved at the ballot box in 2024, is paid for the first time in December 2026. It is costly: around CHF 4.2 billion in the first year, and more later as the population ages. The VAT increase covers only part of it, so additional funding is expected under the AHV 2030 reform.
The increase is therefore the tax counterpart of a social benefit the people voted for. If you want the pension mechanics from an employer's angle, we covered them in our article on the AHV 21 reform and the 13th pension.
Nothing is settled before 29 November 2026
A VAT increase is not just a parliamentary matter. Because it touches the Constitution, it requires a popular vote with a double majority, that of the people and that of the cantons. That vote is expected on 29 November 2026. If it is rejected, the rate would stay at 8.1% and the funding of the 13th pension would have to be reworked.
What changes for your invoicing
If the increase passes, the new 8.5% rate applies to supplies made from 1 January 2028. The key point, often misunderstood: the rate depends on the date of supply, not the date of the invoice or the payment.
The date that counts: the supply, not the invoice
A service delivered in December 2027 but invoiced in January 2028 stays at 8.1%. Conversely, a deposit received in 2027 for a service delivered in 2028 falls under 8.5%. For supplies straddling 31 December 2027, an annual subscription for instance, the part delivered in 2027 is billed at 8.1% and the 2028 part at 8.5%, pro rata.
Your checklist before 2028
Handle the switch smoothly with Bill Alps
A rate change is above all a tooling matter: your tool must apply the right rate at the right time and handle the transition without slips. With Bill Alps, you pick the VAT rate on each invoice line, so you can calmly issue documents at 8.1% and 8.5% during the switchover, without redoing all your invoicing by hand.
- The standard VAT rate rises from 8.1% to 8.5% on 1 January 2028, to fund the 13th AHV pension.
- The reduced rate stays at 2.6%; the accommodation rate goes from 3.8% to 4.0%.
- The increase still has to be approved in a popular vote, probably on 29 November 2026.
- The rate is set by the date of supply, not the date of the invoice or the payment.
- Plan ahead for contracts straddling 2027-2028 by splitting supplies across both rates.
- Make sure your invoicing software handles both rates during the transition.