Liechtenstein Announces VAT Changes

06.05.2010


On May 4, Liechtenstein’s government adopted a report and proposal concerning an amendment to the country’s value-added tax (VAT) law: in accordance with the bill, VAT rates in Liechtenstein will be increased in line with those in Switzerland from 2011.

In a bid to finance disability insurance, Switzerland’s parliament voted to temporarily increase the standard rate of VAT from 7.6% to 8.0%, the reduced rate of VAT from 2.4% to 2.5% and the special rate of VAT accorded to accommodation services from 3.6% to 3.8%. Approved in a referendum by the Swiss people and cantons, Switzerland’s Federal Council has now enacted the corresponding decree implementing the new rates.

Given Liechtenstein’s international treaty obligation with Switzerland, the principality must also adopt these tax increases, by making the necessary changes to articles 25, 28, and 37 of the country’s VAT law.

The VAT rise is due to take effect in both Liechtenstein and Switzerland from January 1, 2011.

 

Quelle: Tax-News.com