Switzerland VAT Regulation Updates in 2025
In 2025, Switzerland will introduce updated VAT rules for electronic platforms, marking a significant step in clarifying tax obligations for e-commerce. Starting January 1, 2025, platform operators facilitating sales within Switzerland and internationally will face new reporting and compliance requirements under the Swiss Federal Tax Administration (FTA).
What are the new VAT rules?
The updated VAT regulations focus on ensuring that platform operators accurately report transactions and comply with Swiss tax laws. These rules introduce several key changes:
1. Dual Supply System
• Transactions involve two supplies:
• From the seller to the platform operator.
• From the platform operator to the buyer.
2. Exempt Supplies
• Supplies from sellers to platform operators are VAT-exempt under Article 23, paragraph 2.13 of the VAT Act.
• However, sellers can voluntarily opt to tax these supplies if agreed with the platform operator.
3. Cross-Border Transactions
• When goods are imported into Switzerland, the seller-platform transaction must be declared under item 221 in the VAT return.
• Platform operators may also be taxed under Article 20a of the VAT Act.
4. Invoice Requirements
• Sellers must include the platform operator’s VAT details and tax rate (e.g., 8.1%) on invoices for taxable transactions.
5. Administrative Updates
• Platforms are no longer required to automatically provide data to the FTA.
• Reconciliation of taxed sales and imported goods’ declared value is no longer mandatory.
Who is affected by these changes?
The new VAT regulations impact platform operators facilitating e-commerce transactions, including:
• Online marketplaces.
• Platforms connecting sellers and buyers.
• Cross-border e-commerce businesses importing goods into Switzerland.
How to comply with the new rules
To comply with these new VAT requirements:
• Ensure your platform is registered with the FTA.
• Review and update your transaction reporting processes.
• Adjust invoicing systems to include VAT details where necessary.
Why compliance matters
Adhering to these new VAT regulations ensures:
• Full compliance with Swiss tax laws.
• Avoidance of potential penalties.
• Transparency in reporting cross-border transactions.
How VALCORP Can Support Your Business
Our legal experts specialize in Swiss VAT compliance. We can assist your business with:
• VAT registration for platforms.
• Filing requirements and reporting updates.
• Tailored legal guidance for full compliance.
For further assistance, contact our team of legal professionals. We are here to ensure your smooth transition to the new VAT framework.
Contact us VALCORP team of VAT compliance experts in Switzerland:
E-mail: info@valcorp.eu
Phone: +372 55658650