- Swiss authorities have updated the VAT law to address non-compliance by foreign e-commerce suppliers and reduce the national VAT gap
- The 2019 e-commerce regulation required foreign online sellers of low-value goods to register for VAT after reaching a CHF 100,000 threshold, aiming to level the playing field with local retailers
- Despite positive outcomes, VAT non-collection has been rising due to the expanding platform economy
- New amendments mandate VAT registration for e-commerce marketplace operators facilitating sales of low-value consignments over CHF 100,000 annually starting January 1, 2025
- The deemed supplier concept, inspired by the EU model, will be applied where marketplace operators handle VAT duties for transactions they facilitate
- Registered platform operators will become deemed suppliers for VAT purposes, potentially allowing online merchants to deregister from local VAT
- The revised law also outlines scenarios where if the platform operator fails to collect VAT, the merchant could be held jointly responsible
- The changes are set to take effect on January 1, 2025, aligning import VAT exemptions with national customs laws for low-value goods under specific thresholds
Source: 1stopvat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
