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The Federal Council wants to extend the lower VAT rate for hotels, but only until 2035 (theme image)
Keystone
The Federal Council wants to maintain the lower VAT rate for accommodation establishments, but only until 2035. In doing so, it wants to implement a mandate from Parliament, which requested an extension without a time limit.
The hotel industry currently pays 3.8% VAT and will continue to do so until the end of 2027. The standard VAT rate is currently 8.1 percent. The special rate for accommodation establishments was introduced in 1996 and extended several times.
With a motion by Esther Friedli (SVP/SG), member of the Council of States, parliament demanded a further extension beyond 2027. The majority wanted to give the industry planning security.
In the consultation opened on Wednesday, the Federal Council proposed an extension of eight years, until 2035, so that in future it could be discussed within the framework of the new financial regulations whether the special rate for accommodation services should be maintained. The motion was rejected by the Federal Council.