The Swiss Parliament, after extensive dialogue, adopted on September 29, 2026, a decision to extend the applicability of the reduced VAT rate to accommodation services. The adopted decision extends the currently set expiration date from December 31, 2027, to December 31, 2031.
Without agreement at this time, the accommodation sector-related services shall become part of the standardly rated services.
The extension of applicability of the reduced rate of 3.8% for accommodation services permits accommodation businesses, less administrative, and business-oriented adaptation.
Timeline
The reduced rate for accommodation services shall be applicable until the end of 2031.
Reduced Rate and Short-Term Rentals
The reduced VAT rate of 3.8% isn’t only applicable to the hotel accommodation sector. It goes well beyond that; it applies to both traditional hotels and so-called parahotels(holiday apartments, furnished accommodation, and short-term rentals listed on the likes of Booking and Airbnb)
The reduced rate of 3.8% applies to the overnight stay, as well as to, e.g., any served breakfast, as part of the principal service or stated separately on the invoice.
However, there are exceptions, and additional costs that are standard-rated. Additional charges such as alcoholic beverages, parking spaces, minibar services, and entrance fees to wellness or entertainment are generally taxed at the standard rate.