New liability for non-resident suppliers to register for Swiss VAT

31 August 2017

The Swiss tax authorities have confirmed that they are amending their VAT Act from 1 January 2019 to state that non-resident mail order companies, which generate a turnover of more than CHF 100,000 of low value consignment sales in Switzerland, will have to VAT register and charge VAT on their sales in the country.

Currently in Switzerland, the Federal Customs Administration waives import VAT on low value consignments that have a VAT amount of CHF 5 or less. This allows non-resident mail order companies to avoid registering and charging VAT to their customers, even if their total sales go above the country's CHF 100,000 registration threshold.

In an effort to remove the disadvantage that this gives resident companies who sell the same products and have to charge VAT, the Swiss tax authorities have stated that from 1 January 2019 non-resident providers will have to register if their sales in the country exceed the CHF 100,000 limit.

LATEST NEWS

The new EU VAT e-commerce package – Implications for...

From 1 July 2021, low-value consignments of €22 or less imported into the European Union (EU) will no longer be exempt from import VAT. Instead, VAT will be...

SEE MORE
LATEST NEWS

The new EU VAT e-commerce package – Implications for...

From 1 July 2021, the European Union’s (EU) e-commerce reform will be introduced, which will include the withdrawal of the current VAT distance selling...

SEE MORE
LATEST NEWS

Separate EORI number for Northern Ireland required

HMRC have recently confirmed that businesses who import and export goods from Northern Ireland (NI) will need a special Economic Operator Identification Number...

SEE MORE

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.