Increase in VAT rates in Liechtenstein

29/09/22

On 25 September 2022, Swiss voters approved the AHV 21 proposal and with it endorsed an increase in VAT rates.

Based on the VAT agreement with Switzerland, VAT rates in Liechtenstein will therefore increase in parallel with Swiss rates as follows:

  Previous Change New rate
Standard rate 7.7% +0.4% 8.1%
Reduced rate 2.5% +0.1% 2.6%
Special accommodation rate
3.7% +0.1% 3.8%

The increase in VAT is expected to take effect on 1 January 2024. We expect the Swiss Federal Tax Administration (FTA) to publish transitional provisions on its website before the new VAT rates come into force explaining how the new rates should be applied to supplies and invoices that span the changeover period. The FTA’s publications relating to VAT also apply equally in Liechtenstein.


What does this mean for your company?

The necessary adjustments in ERP systems often turn out to be more complex and time-consuming than expected. We therefore recommend drawing up a timetable as early as possible to ensure that systems are converted to the new VAT rates on time and invoices are issued correctly. PwC will hold an explanatory WebEx as soon as the transitional provisions have been published.

We would be delighted to assist you with the implementation of the VAT rate increase. Please reach out if you would like to discuss this with us.

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Contact us

Thomas Patt

Thomas Patt

Director Tax & Legal Services, PwC Switzerland

Tel: +41 58 792 47 49

Benno Daehler

Benno Daehler

Senior Associate, PwC Switzerland

Tel: +41 58 792 22 82