- Switzerland is implementing new VAT regulations for e-commerce starting in January 2025.
- The goal is to combat VAT fraud and ensure fairness between local and foreign businesses.
- Marketplaces will be responsible for collecting VAT on certain transactions.
- This aligns Switzerland with European efforts to address international e-commerce and reduce VAT fraud.
- Switzerland has been working to combat VAT fraud since 2018.
- Previously, foreign companies could operate in Switzerland with simplified regulations, creating an unfair advantage over Swiss companies.
- In 2018, the Swiss tax administration changed the rules to consider a foreign company’s global turnover, not just Swiss turnover, for VAT obligations.
- In 2019, clarification was provided regarding “small shipments” with a VAT amount not exceeding CHF 5.
- Foreign companies with Swiss turnover exceeding CHF 100,000 must charge VAT on their sales.
- Despite these efforts, many foreign companies continued to operate without charging VAT.
- The new regulations aim to address this by holding marketplaces accountable for VAT collection on sales to Swiss individuals.
- The reform only applies to companies selling goods through marketplaces.
- Service sales are not included.
Source: easytax.co
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.
