Introduced: 1995 (modern system)
Standard Rate: 8.1%
Special Accommodation Rate: 3.8%
Reduced Rate: 2.6% (food, books, non-alcoholic drinks)
Authority: Swiss Federal Tax Administration (FTA)

Switzerland operates a completely independent VAT system outside the EU VAT area. Tourism is one of its largest sectors, so VAT applies broadly across hotels, mountain transport, events, and local services. Correct invoicing is essential because different parts of a package may fall under different rates.

Scope for Travel Businesses

• Accommodation (hotels, holiday apartments, lodges) is taxed at the special 3.8 percent rate.

• Tours, excursions, events, transport, and DMC services are generally taxed at 8.1 percent.

• Catering and hospitality may attract mixed rates if food and services must be itemised separately.

• Rail, mountain transport, sightseeing and leisure attractions typically fall within the standard rate unless specifically exempt.

Foreign tour operators, OTAs, and event planners often underestimate how many services attract the standard rate rather than the reduced accommodation rate.

Refund Position

Switzerland allows VAT refunds for foreign businesses under its own refund scheme, provided strict conditions are met:

• The claimant has no fixed establishment in Switzerland.

• The business is not VAT-registered in Switzerland.

• The home country offers reciprocity.

• The invoices are issued with the foreign company’s name, address, rate, and the supplier’s VAT number.

Refundable costs normally include hotel accommodation, conference venues, exhibition space, business travel, local transport, and some services. Entertainment items and incorrectly invoiced packages are not refundable.

Claims require original invoices and must meet tight documentary standards. Invoices lacking proper descriptions or split rates are often rejected.

Documentation and Compliance

• Claims are submitted for a calendar year with a minimum claim amount.

• Original invoices must show full VAT details.

• Mixed-rate supplies (for example, accommodation and meals) must be itemised correctly.

• Errors in description lead to automatic rejection.

Antravia helps

We support global travel businesses by reviewing Swiss invoices, assessing refund eligibility, and ensuring that hotel and event contracts are structured correctly so input VAT is not lost unnecessarily.

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Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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