- Effective Date:
- The partial revision of the Swiss VAT Law (rVATL), adopted by the Swiss Parliament in June 2023, will come into force on January 1, 2025.
- The revised law encompasses various changes, with the e-commerce rules being particularly significant.
- E-Commerce VAT Rules:
- Under the new rules, electronic platforms will be considered as “deemed suppliers” for all supplies of goods they facilitate, unless specific conditions are met.
- Additionally, electronic platforms may be requested by the Swiss Federal Tax Administration (SFTA) to provide information on sellers.
- This change will impact all businesses engaged in e-commerce supply chains in or into Switzerland.
- Current Rules:
- Currently, when a mail-order seller sells goods into the Swiss territory through an electronic platform acting as a direct representative (disclosed agent), the seller is considered the supplier of the goods to the buyers.
- If goods are shipped from abroad to Swiss buyers, the mail-order seller typically has no Swiss VAT obligations.
- However, a deviation from this rule was introduced in 2019 for “low-value goods” exceeding the CHF 100,000 threshold. In such cases, the mail-order seller must register for Swiss VAT and collect VAT on local supplies.
- Impact on Electronic Platforms:
-
- The upcoming changes mean that electronic platforms themselves, acting as direct representatives, will now be part of the supply chain from a Swiss VAT standpoint.
- They will have obligations arising from the underlying supply of goods they facilitate.
Source:
- Join the Linkedin Group on VAT/GST and E-Commerce HERE
