Swiss VAT at 8.5% from 2028? What the federal vote of 29 November 2026 means for your invoices

In March 2024, the people accepted the popular initiative for a 13th AHV old-age pension. To fund part of it, Parliament adopted a federal decree on 19 June 2026 that raises VAT. Because the VAT rates are written into the Federal Constitution, any increase goes to a vote and needs the double majority of the people and the cantons.

The revenue from the increase goes entirely to the AHV compensation fund. The Federal Council's explanations estimate it at about CHF 1.4 billion a year from 2029. If the decree is rejected, this proposal changes no rate. Any other VAT increase would need its own vote (the rates are in the Constitution).

The Federal Council's explanations and the vote page exist in German, French and Italian, not in English: the quotes on this page are our translation, apart from the VAT Act, quoted from the English translation published on Fedlex (for information only; the binding texts are in German, French and Italian).

The table follows the one in the official explanations. For a tradesperson, the change concerns the standard rate: most work, repairs and services are taxed at it. The reduced rate (food, medicines, newspapers, books, certain agricultural goods and work, among others) does not move.

Not before 2028, and not necessarily on 1 January: according to the explanations, the new rate can apply at the earliest at the start of 2028, and it is up to the Federal Council to set the exact date. On 11 November 2026, that date was not known. At the previous increase (from 7.7% to 8.1%), the change took effect on 1 January 2024, and the FTA had published detailed information several months before.

Whatever the result of the vote, the standard rate is 8.1% in 2026 and 2027; if the decree is accepted, it stays at 8.1% until the date set by the Federal Council.

The VAT Act refers to its transitional rules: “If the tax rates change, Articles 112 and 113 apply by analogy” (Art. 115 para. 1 VAT Act). Art. 112 para. 3 says that supplies made in part before the change are taxed under the former law for that part, and under the new law for the part made after it. In 2024, the FTA drew practical rules from this (Info TVA 19 on the 2024 increase, summarised): the time when the supply is made decides the rate, not the date of the invoice or of the payment; on an invoice that covers both periods, the amounts for each period must be shown separately, otherwise the whole amount is taxed at the new rate.

Fictitious example, assuming a change on 1 January 2028: a job of CHF 4,000.– net of VAT, half done in December 2027 and half in January 2028, invoiced in January:

Quotes: if the increase is accepted, a quote signed now for work done after the date of the change would, under the rule applied in 2024, be invoiced at the rate in force when the work is done. If you quote prices including VAT, state in the quote that VAT is charged at the statutory rate in force when the supply is made; if you quote net of VAT, only the VAT amount is affected.

Advance payments: in 2024, the FTA accepted that an advance payment collected before the change, for a supply known to be made after it, could be invoiced at the new rate straight away (Info TVA 19, section 2.3, summarised). The final invoice must split the rates correctly in any case. See also our page on the deposit invoice.

Prices displayed “VAT included” (price lists, flat rates, catalogue): if you do not change them, the increase comes out of your margin. On 1,081.– including VAT, the net amount drops from 1,000.– to 996.31: 3.69 less per 1,000.–.

Net tax rate method or flat tax rates: in 2024, the FTA adjusted them at the same time as the statutory rates (FTA, VAT net tax rates of January 1, 2024). For 2028, check the FTA's publications.

Not VAT-registered (turnover under CHF 100,000 a year, Art. 10 VAT Act, and no voluntary registration): you charge no VAT, so nothing changes on your invoices; your purchases cost a little more. The same goes for anyone who invoices occasional work without a business: see invoicing as a private person. What an invoice must contain if you are registered is in how to invoice as a freelancer.

The VAT rate is set in Settings › My business: it is a free field (8.1% by default), and each invoice says VAT yes or no. If the increase is accepted, you enter 8.5 from the date set by the Federal Council; PDFs already issued do not change. One limit to know: Fele-facture applies one rate per invoice. For work spanning the date of the change, make two invoices (one per period), or ask your fiduciary how to present the case.

The QR-bill is included from the Independent plan (CHF 15 a month); the Free plan allows 5 invoices or quotes a month, without the QR payment part.