Switzerland progresses 4% streaming tax via VAT return

Swiss Federal Tax Administration to use VAT returns for new 4% levy on foreign TV streaming voted for in 2022 referendum

Following 15 May 2022 referendum vote to impose a foreign streaming levy, the Swiss Federal Tax Administration has proposed to base the tax calculations on VAT returns. The Administration would use declared gross income from VAT returns box 200 (after subtraction of boxes 221 and 235).

Swiss voters on 15 May agreed to introduce a 4% levy on providers of digital streaming services such as Amazon, Disney+ and Netflix. This is expected to generate between CHF18 million ($19.3 million) and CHF30 million a year for the Swiss film industry, according to estimates from the culture office and the Swiss parliament.

Spain and Denmark are considering similar levies.

Non-resident streamers would have the option to instead invest the equivalent amount in Swiss-TV production.  This requirement has been in place – investing 4% of their turnover – since 2007 for local television producers

The Levy was initially proposed in 2021, but opponents were able to raise over 50,000 signatures in a public canvassing, which triggered the referendum requirements.  Swiss taxpayers currently give CHF 100 million to the Swiss film industry each year.

In addition to the tax level, being put forward by the Federal Office of Culture, would be a requirement on foreign providers to source at least 30% of their content from Europe.

Read our Swiss VAT guide.

European levies and investment requirements on streaming services

• France and Italy require up to 20% of turnover to be invested locally
• Denmark has imposed a 6% levy
• Portugal has imposed a 1% charge
• Romania is proposing a levy to subsidise local film making

Europe VAT on digital services