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12.2. Object of Taxation

Object to domestic tax are supplies made by taxable persons where the place of supply lies in Switzerland, unless they are exempt from VAT.

Currently, Switzerland knows the following tax rates:

  • 8.0% standard tax rate
  • 2.5% reduced tax rate (e.g. food, medication, books)
  • 3.8% special tax rate (accommodation services)

Some supplies are under certain conditions exempt from VAT without the possibility to deduct the respective input VAT, for example:

  • Turnovers in the field of money and capital transactions
  • Insurance Turnovers
  • Real estate rental
  • Education and training
  • Cultural services
  • Human medical / hospital treatment
  • Social assistance

The taxable person has the possibility to voluntarily tax certain of these supplies, provided the tax is openly disclosed.

Some supplies are under certain conditions exempt from the VAT with the possibility to deduct the respective input VAT, for example:

  • Export of goods
  • Transport of goods in connection with the import / export of goods

Like exported goods, supply of services to a destination abroad is generally VAT-free. Exceptions exist for services which require a physical presence of the provider, services of Swiss travel agencies, etc.