As of 1 January 2018 an
amendment to the VAT legislation will become effective.
The amendment concerns in
particular foreign companies without residency in Switzerland. According to the
current legislation a foreign company generating a taxable revenue of less than
CHF 100’000 is exempted from VAT liability.
Beginning January 1, 2018,
the worldwide revenue will be considered for the
determination of the threshold of CHF 100’000. In consequence, a foreign
company can become liable for Swiss VAT generating only CHF 1 of taxable
revenue, if any supply of goods or services will be performed in Switzerland.
If that is the case, a VAT registration is mandatory at the time such services
will be rendered.
In addition, electronic newspapers, magazines and eBooks will be
treated identical to printed equivalents with respect to the VAT rate. Due to
that, the reduced VAT rate will be applicable
on these products as well.
Examples for Swiss VAT
liability of foreign companies without permanent establishment in Switzerland
One year later, as of 1 January 2019 the small shipments regulation
(e-commerce rule) will enter into force. According to that, a company is liable
to Swiss VAT, if imports of small goods to Switzerland are exceeding the total
annual value of CHF 100’000.
Small shipments are
shipments of goods on which import VAT does not exceed CHF 5 per shipment. This
regulation affects mainly e-commerce companies with a large number of
end-consumers (e.g. Amazon, etc.).
On 1 January 2018 other
changes of the VAT legislation will be effective (examples):
On January 1, 2018 the VAT
rates will be reduced as follows: