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Old 19.12.2017, 11:03
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Changing VAT rates

Is any one aware of the upcoming change of VAT here in Switzerland to 7.7% on the 1st Jan? not seen many news article about it, but I have received an updated bill already for a update reduced price for my parking spot.

If everyone has to pass on this 0.3% savings it is going to be alot of paperwork, price recalculations, price reprinting and banking work for individuals to change standing orders and the likes, but I imagine to big companies it might make a big saving?
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Old 19.12.2017, 11:08
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Re: Changing VAT rates

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Is any one aware of the upcoming change of VAT here in Switzerland to 7.7% on the 1st Jan? not seen many news article about it, but I have received an updated bill already for a update reduced price for my parking spot.
Anyone which followed the vote on September 24th 2017 and its outcome should be aware of the change from 8% down to 7.7%.
For small businesses it is simple. Leave prices as they are, print new VAT rate on bill, and pocket the difference. Once the VAT rate raises again adjust prices upwards. It is more an issues with ongoing contracts as they have to be adjusted.

Information in English: https://www.estv.admin.ch/estv/en/ho...lung-mwst.html

More information in English about the other changes which come in force on January 1st 2018 regarding VAT (more detailed information in German/French/Italian) https://www.estv.admin.ch/estv/en/ho.../revmwstg.html

Very detailed information for those which have to do billing etc (Only available in German/French/Italian).: https://www.gate.estv.admin.ch/mwst-...&&winid=799453
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Last edited by aSwissInTheUS; 19.12.2017 at 11:21.
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Old 19.12.2017, 11:23
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Re: Changing VAT rates

Thanks for that, I did not realize the VAT rates changes so often... still crazy such a small adjustment, it's like the voters got punished for voting "no" to a VAT rise
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Old 19.12.2017, 13:26
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Re: Changing VAT rates

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Is any one aware of the upcoming change of VAT here in Switzerland to 7.7% on the 1st Jan? not seen many news article about it, but I have received an updated bill already for a update reduced price for my parking spot.

If everyone has to pass on this 0.3% savings it is going to be alot of paperwork, price recalculations, price reprinting and banking work for individuals to change standing orders and the likes, but I imagine to big companies it might make a big saving?
It won't be much work, for me maybe 15 minutes to change the rate on my till, on a couple of spreadsheets and in my invoicing template.

And there will be no saving for VAT registered companies big or small as it is not a cost (or an income). For retailers like me, as aSwissInTheUS say's, it means we can increase our VAT inclusive retail prices by 0.03% without retail customers knowing. Maybe I'll be able to afford a holiday in 2018 now!
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Old 19.12.2017, 14:06
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Re: Changing VAT rates

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It won't be much work, for me maybe 15 minutes to change the rate on my till, on a couple of spreadsheets and in my invoicing template.

And there will be no saving for VAT registered companies big or small as it is not a cost (or an income). For retailers like me, as aSwissInTheUS say's, it means we can increase our VAT inclusive retail prices by 0.03% without retail customers knowing. Maybe I'll be able to afford a holiday in 2018 now!
It means you increase your VAT exclusive prices with 0.279% when you do not change the selling prices.

Raising the VAT inclusive price with 0.03% when the VAT gets lowered from 8% down to 7.7% makes no mathematical sense.
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Old 19.12.2017, 15:28
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Re: Changing VAT rates

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If everyone has to pass on this 0.3% savings it is going to be alot of paperwork, price recalculations, price reprinting and banking work for individuals to change standing orders and the likes, but I imagine to big companies it might make a big saving?
I had a letter from my car leasing company asking me to change the direct debit from Jan 1st. The difference is 85 rappen. Hardly worth the trouble for them to send the latter as the contract only has 6 months left to run.
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Old 19.12.2017, 15:40
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Re: Changing VAT rates

I guess it's more about the legal obligation that the monetary worth
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Old 19.12.2017, 15:50
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Re: Changing VAT rates

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...And there will be no saving for VAT registered companies big or small as it is not a cost (or an income)...
It does make a small difference if you're on the fixed rate scheme (Pauschal). With that you don't account for VAT (for claiming or paying). Instead you hand over a percentage of the total invoice amount. The percentage is set by the authorities and depends on the nature of your company. If you do it right, you're slightly better off than if you did account for VAT - for less paperwork. The higher the VAT rate, the better off you are.

So come 2018, my company income will be slightly lower, but I'm sure that the lower VAT I pay personally will more than make up for it!
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Old 19.12.2017, 19:55
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Re: Changing VAT rates

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It won't be much work, for me maybe 15 minutes to change the rate on my till, on a couple of spreadsheets and in my invoicing template.

And there will be no saving for VAT registered companies big or small as it is not a cost (or an income). For retailers like me, as aSwissInTheUS say's, it means we can increase our VAT inclusive retail prices by 0.03% without retail customers knowing. Maybe I'll be able to afford a holiday in 2018 now!
It won't have much impact on your cheesy business, grumpy, as the VAT rate on food will change from 2.5% in 2017 to... 2.5% in 2018. But of course your booze will be affected (full VAT rate), as will the hotel you should open for drunk customers, in which case the change is from 3.8% to 3.7%. Definitely worth all the paperwork for that 0.1% change...
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