Global Daily Tax News, Switzerland Consults On Extending Hotel Stay VAT Relief, (Aug 15, 2025)
The Swiss Government has launched a consultation on proposals to extend the reduced rate of value-added tax for hotel stays.
The 3.8 percent rate has been extended six times, most recently until 2027. The proposal, supported by lawmakers in May 2025, would extend the concession until 2035.
The Government previously recommended against an extension, noting the measure will cost CHF300m annually from 2028. It said the tourism sector is in a significantly better economic situation today than when the special rate was introduced in 1996.
Feedback is being sought on the proposal until November 13, 2025.