7 January 2019
From 1 January 2019, the Swiss government has removed its low-value import VAT exemption on goods bought from foreign suppliers.
Previously, the threshold for the exemption was set at CHF 62.50 (approx. £50) for most goods and allowed importers to purchase goods VAT free from non-resident companies below this amount.
However, in an effort to remove the unfair advantage that gave non-resident providers over resident providers of the same goods, the Swiss government removed the low-value threshold from 1 January 2019. This now means that non-resident providers will have an obligation to register and account for VAT on the sale of the low-value goods when their annual sales exceed the CHF 100,000 (approx. £80,000) VAT registration threshold in the country.
The European Union is also planning the removal of its low-value consignment stock relief threshold in 2021.
Find out more about VAT in Switzerland