Value added tax Committee in favor of temporary extension of special hotel rate
The extension of the lower VAT rate for the hotel industry requested by Parliament has triggered a controversial debate in the National Council committee responsible. However, the committee has asked the Council to apply the lower rate until the end of 2035.
19.05.2026, 18:03
19.05.2026, 18:04
SDA
The National Council's Committee for Economic Affairs and Taxation (WAK-N) supported the Federal Council's proposal by 14 votes to 11, as reported by the parliamentary services on Tuesday. The committee's opinions on the justification and benefits of the reduced VAT rate for the hotel industry differed greatly.
The standard VAT rate is currently 8.1 percent, while the special rate for the hotel industry is 3.8 percent. This special rate was introduced for a limited period in 1996 to support the struggling industry. It has been extended six times so far, most recently until 2027.
For the majority of the WAK-N, the special rate for the hotel industry is a tried and tested instrument that is financially manageable for the federal government, as stated in the press release. Its aim is to ease the burden on the tourism industry. The strong franc and the impact of crises such as the war in Iran continue to justify it.
Swiss tourism at a record high
Opponents pointed out that the effect of the lower VAT on tourism was demonstrably small. It would mainly benefit very large businesses, which would hardly pass on the relief to guests. Swiss tourism is at a record high and is no longer dependent on the special rate.
The WAK-N rejected the idea that only smaller businesses should benefit from the lower VAT rate. It voted 16 to 7 against setting an annual turnover of CHF 10 million as the upper limit. The majority found this approach too bureaucratic. It was also hardly in line with the constitution.
Parliament had urged the Federal Council with a motion to retain the special rate for accommodation establishments of 3.8% instead of 8.1% until further notice; the Federal Council was against this. In its bill, it is now proposing an extension until 2035.
He wrote that this would allow a discussion within the framework of the new financial regulations as to whether the special rate should be retained. If the lower VAT rate for the hotel industry is retained, this would lead to a reduction in revenue of CHF 300 million per year. Due to the debt brake, this amount would have to be compensated for elsewhere.
The National Council is expected to discuss the bill in the summer session.
