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Liechtenstein: Domestic Corporate Taxation

Value Added Tax

This page was last updated on 28 May 2020.

When Liechtenstein became part of the EEA, value added tax was introduced under the Law on Value Added Tax 1995. Liechtenstein is in VAT union with Switzerland; its VAT the laws are very similar to the equivalent Swiss laws and any changes to VAT rates in Switzerland will also be applied in Liechtenstein.

The standard rate of VAT is 7.7%, and a reduced rate of 2.5% applies to food, drugs, newspapers, magazines and books. In addition certain types of accommodation are charged at 3.7%. Exports are exempt, as are medical and educational services, social services, banking, insurance and most property transactions.

The last time the VAT rates were changed – in both Switzerland and Liechtenstein – was on 1 January 2018. The standard rate was lowered from 8% to 7.7% and the special rate for accommodation services was reduced from 3.8% to 3.7%. The reduced 2.5% rate remained the same.

Any person liable for VAT who conducts entrepreneurial activity in Liechtenstein and has a taxable turnover of less than CHF 100,000 within a financial year can be exempted from taxation.

 

 

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