Swiss Hotels Get VAT Rate Extension Until 2031

Hotels in Switzerland will continue to benefit from a reduced value-added tax rate of 3.8 percent, but only until 2031. The National Council has approved an extension of the special rate, which was set to expire in 2027. However, the council has decided against extending it through 2035 as originally planned.

The decision was made after a final vote on Monday, with 101 members voting in favor and 86 opposing the bill. The Council of States had previously agreed to consider the extension until 2035, but the National Council wants to limit it to 2031 instead.

Opponents of the extension argued that the Swiss hotel industry is doing well and no longer needs the special rate, which was introduced in 1996. However, proponents of the extension said that the industry remains under pressure due to a strong Swiss franc and a shortage of skilled workers.