Switzerland’s Parliament Agrees Compliance Changes To The VAT Act Which Come Into Effect 1st January 2025

Switzerland’s Parliament Agrees Compliance Changes To The VAT Act Which Come Into Effect 1st January 2025. The main changes are listed below. Switzerland increase 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 eliminates 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