https://www.pwc.ch/en/insights/tax/tax-and-legal-newsletter-3-2024.html

Starting 1 January 2025, a revision of the Swiss VAT Act will be implemented and will bring certain changes. Below is an overview of the most important updates that you should be aware of: 

Platforms: New VAT Rules for Digital Platforms 

The revised VAT Act will introduce significant modifications impacting digital platforms. One of the key changes is that the VAT registration obligation will shift from the supplier to the platform. Platforms will be required to act as “deemed suppliers”, register for Swiss VAT, and charge, collect, and remit Swiss VAT on all subsequent supplies of goods. 

The “deemed supplier” concept will apply to both cross-border and domestic supplies, where two separate transactions will be deemed to have taken place under certain conditions: 

1. Supply from the supplier to the platform – without Swiss VAT: 
2. Domestic supplies: VAT exempt (with the right to deduct input VAT) 
3. Cross-border supplies to Switzerland: place of supply abroad, no Swiss VAT 

• Supply from the platform to the end customer: 
• Domestic supplies: subject to Swiss VAT 
• Cross-border supplies to Switzerland: import Swiss VAT (generally) + local Swiss VAT on the supply to the end customer (whether B2C or B2B) 

The resulting VAT implications for the marketplace operator/platform as of 2025 are as follows: 

• VAT registration for the platform is required if the marketplace operator’s turnover from low-value consignments from abroad exceeds CHF 100,000 per year (or, in the case of domestic supplies in Switzerland, if worldwide turnover exceeds CHF 100,000 per year). 
• If turnover from low-value consignments from abroad exceeds CHF 100,000 per year, the place of supply is deemed to be in Switzerland and all subsequent supplies of goods from abroad to end customers in Switzerland, regardless of the value, are subject to Swiss VAT. The platform must act as the importer of record and charge Swiss VAT to Swiss customers (even if no import VAT was due for the relevant low-value consignments). 

Reporting & Declarations: Simplified Processes for Annual Declarations 

Until now, companies had the flexibility to file VAT returns quarterly, semi-annually, or monthly. As of 1 January 2025, businesses with annual revenues of up to CHF 5,005,000 can opt to file VAT returns annually. 

Adjustments to VAT Exemptions  

Certain adjustments have also been made regarding VAT exemptions. New VAT exempted services are (these are generic description that need to be analyzed in further detail on a case-by-case basis): 

• Travel services resold by domestic and foreign travel agencies, along with their related services. (Foreign travel agencies will not be liable for tax in Switzerland when organizing trips to Switzerland); 
• Active participation in cultural events; 
• Coordinated care services provided during medical treatments; 
• Provision of infrastructure for attending physicians in outpatient and day clinics; 
• Care and domestic services provided by private home care organizations; 
• Provision of staff by non-profit organizations; 
• Offering and management of Swiss Investment Foundations. 

Emission rights and green certificates 

The VAT revision shifts the identity of the VAT-liable person when it comes to emission rights (green certificates and similar rights and certificates). From 1 January 2025, the recipient of such certificate will have to apply reverse charge on such acquisitions (whether the provider is domiciled in Switzerland or abroad). 

Tax rate changes for feminine hygiene products 

Feminine hygiene products are now subject to the reduced VAT rate (2.6%). 

For further details please contact Roland Reding