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Eight -year extension of the special VAT rate in accommodation


Keystone-SDA

The special VAT rate for the accommodation sector, today by 3.8%, will be extended by eight years. At the request of the Parliament, the Federal Council opened a consultation on this subject on Wednesday. The deadline runs until November 18.

(Keystone-ATS) In accommodation, the VAT rate can be set lower than the normal rate, but higher than the reduced rate. Parliament extended in the summer of 2017 and until 2027 the current special rate of 3.8%.

From now on, the government offers an extension until the end of 2035 when the current financial regime expires. The question of maintaining this rate for accommodation services can be examined in the context of discussions on the new financial regime, said the Federal Council in its press release.

The federal rooms had transmitted a motion asking to fix the rate once and for all at 3.8%. But the government had opposed the text, invoking the improvement of the economic situation in the tourism sector since 1996, the year of the introduction of the special rate.

This extension leads to a shortfall of around 300 million francs per year for the Confederation compared to the amount registered from 2028 in the financial plan in force, notes the government. Due to debt brake, this drop must be offset by a reduction in expenses or an increase in revenue in other areas.

delaney.knight
delaney.knight
A Miami marine reporter, Delaney maps coral-reef heartbreaks with watercolor sketches and policy sidebars.
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