On June 2, 2017 the Swiss Federal Department of Finance issued a press release announcing that during its meeting of June 2, 2017, the Federal Council decided that the partial revision of the Value Added Tax Act adopted by Parliament will come into force on January 1, 2018. In the press release it is furthermore stated that the mail-order regulations will only come into force on January 1, 2019.
As of January 1, 2018 company's global turnover will now be decisive for mandatory tax liability, and no longer just its turnover in Switzerland. Companies whose global turnover is at least CHF 100,000 will be liable to VAT from the first franc of turnover in Switzerland. Previously, foreign companies could provide their services in Switzerland without VAT up to a turnover level of CHF 100,000.
There will be a delay of a year for the mail-order regulations. These will not come into force until January 1, 2019. According to the press release issued by the Swiss Federal Department of Finance is that Swiss Post needs more time for the implementation of the statutory provisions for technical reasons. Consequently, mail-order companies will be liable to tax from 2019 if their annual turnover from small consignments that are import-tax-free is at least CHF 100,000. Such mail-order companies will themselves bill customers for VAT. In return, the customers will no longer have to pay the taxes and fees levied by Customs upon importation.
The remaining changes, like a.o. a reduced VAT rate for electronic newspapers, magazines and books, margin taxation for collectors' items and others will all enter into force on January 1, 2018.
Click on the language of your choice to be forwarded to the text of the law in that language (German, French or Italian).
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