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.
Source PwC
