Switzerland’s Parliament agrees a range of compliance change to the VAT Act which come into effect on 1 January 2025.
The main changes are listed below. Switzerland will raise VAT in 2024 to 8.1%.
- Marketplace deemed supplier VAT obligations, shifting the VAT collection obligations from sellers to their facilitating digital platforms for goods only. The platforms can opt for a deferred VAT arrangement where the goods are imported. This follows the EU 2021 e-commerce platform reforms which also introduced this.
- Taxpayers with a turnover below CHF 5,005 may reporting on a annual basis.
- Domestic trades of carbon emission certificates will be subject to the domestic reverse charge. This removes the obligation for VAT cash payments and so eliminate the opportunity for VAT fraud.
- The tax authorities may opt to no longer require non-resident VAT registered taxpayers to appoint a local fiscal representative.
- The “place of supply” for streaming services in culture, arts, sports, education, science, and entertainment will be deemed to be at the recipient’s location.
- Menstrual products will be reclassified from the standard to the reduced 2.6% VAT rate.
- The following services are to be exempted from VAT:
- Coordinated care services related to curative treatments
- Travel (re-)sold by travel agencies,
- Fees for the participation to cultural events
- Products and services provided amongst institutions which have been founded by public bodies
