- The Swiss Federal Taxation Administration (FTA) is proposing draft amendments to require digital platforms to collect VAT starting from 1 January 2025.
- The aim is to improve VAT collection while reducing administrative burden on sellers and the FTA.
- The proposed legislation would require persons operating digital platforms to be involved in VAT collection, deeming them liable for VAT on sales facilitated through their platforms.
- This would create two consecutive supply relationships: between the underlying seller and the platform, and between the platform and the recipient of the supply.
- The proposed amendments also aim to limit the number of taxable persons by exempting foreign sellers who only supply goods through platforms from VAT obligations on Swiss territory.
- Additionally, the amendments seek to facilitate relations between taxable sellers and the platform from a formal perspective.
Source Orbitax
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