Switzerland Considering Extension of Reduced VAT Rate for Accommodation Services Sector

Switzerland has published a dispatch from the Swiss Federal Council on 7 May 2026 concerning a draft amendment to extend the reduced VAT rate of 3.8% for the accommodation services sector, including hotels. Currently scheduled to expire after 31 December 2027, the amendment extends the application of the reduced rate until 31 December 2035. The Council, however, has recommended that Parliament reject the amendment, noting that the hotel industry is performing well and the reduced rate is no…