Swiss Hotels Get VAT Rate Extension Until 2031

A special VAT rate for hotels in Switzerland has been extended until at least 2031. The National Council voted to extend the rate, which was set to expire in 2027, by a margin of 101-86 with seven abstentions. This decision aligns with the Council of States' recommendation, but differs from their preferred extension period of 2035.

The special tax rate for hotels was introduced in 1996 and has been extended six times previously. Proponents argued that the industry still faces challenges due to the strong Swiss franc and a shortage of skilled workers. They also emphasized the need for predictability in planning, as well as the fact that neighboring countries offer similar tax breaks.

Opponents, on the other hand, claimed that the hotel industry has recently reported record figures and no longer needs special treatment. They argued that the loss of revenue from the special tax rate would not be significant enough to impact the financial plan.