When do I have to account for VAT on my holiday rental?

When am I liable for VAT on my holiday rental?

You are liable for VAT if you run a business: that is, if you carry out an independent activity aimed at earning sustainable income and act in your own name (Art. 10 paras. 1 and 1bis VAT Act). Regularly renting to guests may count. But you are exempt as long as your annual turnover from supplies that are not exempt from tax is less than CHF 100'000 (Art. 10 para. 2 let. a VAT Act). The calculation excludes VAT (Art. 10 para. 2bis VAT Act).

Your turnover includes overnight stays, final cleaning and extras you charge guests for. Long-term residential letting does not count because it is exempt from tax. If you also run a business as a sole trader, its turnover may count too; check this with the FTA.

Your exemption ends as soon as you reached the threshold in the previous financial year, or it is foreseeable that you will exceed it within 12 months of starting (Art. 14 para. 3 VAT Act). You must then register with the FTA within 30 days (Art. 66 para. 1 VAT Act).

Which VAT rate applies?

• 3.8% for accommodation services: accommodation including breakfast, even if you charge separately for breakfast (Art. 25 para. 4 VAT Act).
• The law treats ancillary services in the same way as the main service (Art. 19 para. 4 VAT Act). If you are unsure whether final cleaning or laundry counts as an ancillary service to the overnight stay, check with the FTA.
• 8.1% standard rate for other services, such as meals other than breakfast (Art. 25 paras. 1 and 3 VAT Act).

The special rate is currently set in law until 31 December 2027 at the latest. The National Council and Council of States have approved an extension to the end of 2031; the Council of States approved it on 29 September 2026. The amendment will only take effect if the referendum period expires without a referendum. Without an extension, the standard rate of 8.1% would apply from 2028.

Example calculation: If your prices include VAT, 3.8 / 103.8 = 3.66% of the price is VAT. On turnover of CHF 110'000 including VAT, you therefore owe around CHF 4'027, less the input tax on your expenses. The net tax rate method makes accounting simpler if your turnover is no more than CHF 5'024'000; the FTA sets the rate (Art. 37 VAT Act).

Is voluntary VAT registration worthwhile?

If you are exempt, you can waive the exemption for at least one tax period (Art. 11 VAT Act). You can then deduct input tax on expenses, for example for a major renovation, but you owe 3.8% on all overnight stays. Whether it is worthwhile depends on your investments. Run the numbers before registering.

Acquisition tax: the pitfall with platform fees

If you receive services from companies based abroad that are not registered in the Swiss VAT register, they are subject to acquisition tax. If you are not liable for VAT yourself, you only have to pay it if you receive such services worth more than CHF 10'000 in the calendar year (Art. 45 para. 1 let. a and para. 2 let. b VAT Act). You must then register within 60 days of the end of the year (Art. 66 para. 3 VAT Act). At a 15% commission, you reach the threshold with around CHF 66'700 turnover through such a platform.

Airbnb already charges VAT on its service fee in Switzerland, even if you have entered a VAT number (Airbnb Help, article 437). You can check whether another provider is registered in the Swiss UID register. Fees for each platform are listed under Platforms.

What differs between cantons?

VAT is federal law and applies equally in all cantons. What differs are the additional levies: tourist tax, accommodation levy or tourism promotion levy. In Ticino, the host owes a promotion levy of CHF 1.25 per night in addition to the tourist tax of CHF 2.00; in Bern, a cantonal accommodation levy of CHF 1.00 per night applies to guests aged 16 and over. Find out more under tourist tax.

A short summary, not legal advice. The linked official source and your municipality’s rules prevail.