Swiss VAT on digital services

November 8th, 2017

Since 2010, the place of supply for VAT purposes of electronic supplies to Swiss consumers is Switzerland.  This means foreign providers of such supplies may have to register for Swiss VAT, charge and pay local VAT. This includes Liechtenstein, which is in a VAT union with Switzerland. Electronic and broadcast services liable to Swiss VAT The …


Switzerland cuts e-book VAT to 2.5%

October 21st, 2017

Switzerland is to reduce the VAT rate on e-books from 8% to 2.5% on 1 January 2018. This will bring the VAT rate on electronic books into line with that on printed books. The main Swiss VAT rate will also drop from 8% to 7.7% on the same date. The European Union has been debating …


Swiss VAT drops to 7.7% 2018

September 24th, 2017

On 24 September 2017, the Swiss population rejected a proposal to raise VAT to 8.3% from the current 8%. This proposal was in support of a pension reform package, including more flexibility around the retirement age, with increased contributions from employers and employees. As a result of this vote – 53% of voters rejected the …


Swiss cuts VAT threshold for foreign businesses

September 21st, 2017

From 1 January 2018, Switzerland will change the way it calculates the VAT registration threshold for non-resident businesses. Currently, foreign companies or individuals providing taxable supplies in Switzerland only have to VAT register if their Swiss sales exceed CHF100,000.  From 2018, this threshold will be based on total, global income of the business. Mail-order companies …


Switzerland votes on VAT rise

August 19th, 2017

Switzerland is to vote on September 24 whether to raise its VAT rate from 8% to 8.6%. A gfs.com poll this week has put the in-favour vote at 53% of the electorate.  The rise is designed to help fund pension fund reforms. The VAT increase would fund a compensation payment to retiring workers who will …


Swiss VAT rate cut 2018

March 1st, 2017

The temporary 8% Swiss VAT rate may be returned to the pre-2011 rate of 7.7%. The current, higher rate was voted on in a public referendum to fund certain public expenditure on the railway network.  But this rise is due to expire at the end of 2017.  The Swiss Parliament will consider a further extension …


Swiss VAT changes

October 7th, 2016

The Swiss Parliament has ratified a number of changes to the VAT Act, effective 1 January 2018. These include: Applying the reduced 2.5% VAT rate to online media The place of supply for domestic electricity, gas and telephony becomes the residency of the consumer Introduction of a CHF 100,000 VAT registration threshold for branches of …