The special VAT rate of 3.8% for the hotel and hotel-related sectors is to be extended for an additional eight years until the end of 2035 in Switzerland.
The country’s Federal Council, in a meeting, launched the relevant consultation, following a proposal from Parliament on the topic “Special VAT Rate. Giving Tourism a Reliable Long-Term Horizon”. It should be noted that the extension of the application period of this special rate results in a revenue deficit of approximately 300 million Swiss francs per year for the Confederation. The consultation process will last until November 13, 2025.
Meanwhile, according to data from the country’s Federal Statistical Office in the second quarter of 2025, total employment (excluding the primary sector) in Switzerland increased by 0.6% compared to the same quarter of the previous year. Companies reported 10% fewer job vacancies than a year earlier.
Moreover, according to a survey by Bisnode, in 2024 around 4,813 companies closed their doors in Switzerland, recording an increase of 2% year-on-year, mainly in the construction, healthcare and catering sectors. The increase in bankruptcies was particularly significant in the semi-cantons of Appenzell Innerrhoden (+67%) and Outerrhoden (+38%), as well as in Neuch?tel (+36%), Nidwalden (+30%) and Schaffhausen (+29%). Obwalden (-21%), Graub?nden (-11%) and Zurich (-6%) recorded the largest decreases in bankruptcies over the past year. Also, according to data from the Federal Statistical Office, investment in the construction sector in Switzerland fell by 0.7% in nominal terms in 2024 compared to the previous year. For example, investment in building construction fell by 1.1%, while investment in renovation projects increased by 2.3%.
The information comes from the Office for Economic and Commercial Affairs in Bern.
