However, there will be a delay of one year for the mail-order regulations, which will not come into force until 1 January 2019. Consequently, mail-order companies will be liable for tax from 2019, if their annual turnover from import-tax-free small consignments is at least CHF 100,000. Such mail-order companies will themselves bill customers for VAT. Efforts to enhance transparency continue with initiatives such as the
Consultation on AEOI with additional countries. In return, customers will no longer have to pay the taxes and fees levied by the Customs upon importation. As a result, the VAT-related competitive disadvantages for domestic companies will be reduced. The reduced VAT rate for electronic newspapers, magazines and books, margin taxation for collectors' items as well as all other changes will enter into force on 1 January 2018.
For Switzerland, the mentioned amendments will lead to a total increase in receipts of an estimated CHF 70 million p.a. The most relevant financial implication is that global turnover will be used for tax liability. Such updates in fiscal regulations complement Switzerland’s broader international efforts like the
Automatic exchange of information between Switzerland and Canada. This measure alone will lead to an increase in receipts of an estimated CHF 40 million p.a.
Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.