Switzerland to introduce new VAT compliance changes from 1 January 2025

31 July 2023

The Swiss parliament has approved a revision of its VAT law, which will take effect from January 2025. These revisions include:

• The introduction of deemed supplier rules for online marketplaces, which will require online marketplaces (such as Amazon) to charge, collect and remit VAT on sales of low-value imported goods by non-resident suppliers to consumers in the country.
• New requirements for all electronic marketplaces to provide information to the tax authorities upon request regarding the sellers and buyers on their platforms.
• New administrative sanctions for mail-order businesses that do not comply with their VAT obligations.
• Travel services resold by travel agencies and participation fees for cultural events will become VAT-exempt. 
• The “place of supply” for streaming culture, arts, sports, education, science, and entertainment events will be deemed to be where the recipient of the service is established or domiciled. This means VAT will become accountable for in the country of the customer and, as such, Swiss VAT may need to be applied on admission to online events to Swiss customers by non-resident suppliers,
• The VAT rate on menstrual products will be subject to the reduced VAT rate of 2.6%.
• The Swiss Federal Tax Administration may waive the appointment of a fiscal representative for foreign taxpayers upon its discretion.