VAT Rates, Daily and Mileage Allowances and E-archiving in Switzerland

VAT rates in Switzerland

Switzerland imposes Value Added Tax (VAT) at different rates as follows for various goods and services:

1. Standard rate - 8.1%

The standard VAT rate in Switzerland is applicable to all taxable goods and services, except when a specific measure allows for a reduced rate.

2. Reduced rate - 3.8%

Hotel accommodation.

3. Reduced rate - 2.6%

Food and drink (except that provided in hotels); agricultural supplies; water; printed materials; medicines; cultural and sporting events.

4. Zero rate - 0%

Exports; supplies of goods and services to airlines.

Sources: https://www.estv.admin.ch/estv/en/home/value-added-tax/vat-rates-switzerland.html 

Daily allowances in Switzerland

Art. 327a:

• The employer must reimburse the employee for all expenses necessarily incurred in the performance of the work and, in the case of work done off the employer’s premises, for his necessary living expenses.
• An individual agreement, standard employment contract or collective employment contract may provide that such expenses be reimbursed in the form of a fixed sum, such as a per diem or a weekly or monthly allowance, provided that this covers all necessary expenses.
• Any agreement whereby the employee must bear all or part of such necessary expenses is void.

Source: https://www.fedlex.admin.ch/eli/cc/27/317_321_377/en 

Mileage allowances in Switzerland

Touring Club Swiss (TCS) publishes a yearly overview of applicable rates based on the type of car. The average kilometre cost for 2025 is CHF 0,76 per kilometre. 

Source: https://www.tcs.ch/de/testberichte-ratgeber/ratgeber/kontrollen-unterhalt/kilometerkosten.php

https://www.fedlex.admin.ch/eli/cc/27/317_321_377/en#art_327_b 

Electronic archiving and retention period in Switzerland

The accounting records must be kept and stored, and the supporting documents must be recorded and stored in such a way that they cannot be altered without such changes being detectable.

• Depending on the nature and scope of the business, the organization, responsibilities, processes and procedures, and the infrastructure (machines and programs) used for keeping and storing the accounting records must be documented in work instructions in such a way that the accounting records and supporting documents can be understood.
• Work instructions must be kept up to date and retained under the same principles and for the same duration as the accounting records to which they relate.

The following are permissible for the storage of documents:

a. Unalterable information carriers, namely paper, image carriers, and unalterable data storage media;

b. Alterable information carriers, provided that:

1. Technical processes are used that ensure the integrity of the stored information (e.g., digital signature methods),

2. The time of storage of the information can be proven to be tamper-proof (e.g., through a "timestamp"),

3. The applicable regulations in effect at the time of storage concerning the use of the relevant technical processes are complied with, and

4. The procedures and processes for their use are defined and documented, and the corresponding auxiliary information (such as logs and log files) is also retained.

Information carriers are considered alterable if the information stored on them can be changed or deleted without the change or deletion being detectable on the storage medium (such as magnetic tapes, magnetic or magneto-optical disks, hard or removable drives, solid-state storage).

Source: https://www.fedlex.admin.ch/eli/cc/27/317_321_377/en#part_4/tit_32/sec_1/lvl_C

https://www.fedlex.admin.ch/eli/cc/2002/216/de