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21 February, 2025
Switzerland's New E-commerce VAT Regulations
Starting January 1, 2025, new VAT rules in Switzerland will affect electronic platforms that help sellers and buyers make deals. Here's a simple breakdown:
1.Platform Operators as Suppliers: If you run an electronic platform that connects sellers with buyers, you're now considered the supplier to the buyer. This creates two transactions for VAT purposes:
2.Tax Exemption for First Transaction: The transaction between the seller and your platform is tax-exempt. In your VAT return, report this under item 220 (supplies exempt from tax).
3.Importing Goods: If goods are imported into Switzerland, the first transaction (seller to platform) is considered to take place abroad. Sellers should report these as "supplies abroad" in their VAT return under item 221.
4.Platform Operators' Location: Whether your platform is based in Switzerland or abroad, these VAT rules apply to you.
5.Invoicing Details: If the original seller issues an invoice to the buyer that includes VAT, it must mention the platform operator and state that the transaction falls under Article 20a of the VAT Act. For example: "VAT at a rate of 8.1% reported to the FTA in accordance with Article 20a of the VAT Act by [platform operator's name and VAT number]."
6.Information Sharing: Unlike earlier drafts, from January 1, 2025, platform operators aren't required to automatically provide information to the Federal Tax Administration (FTA). Instead, you'll need to share information only if the FTA requests it.
7.Reconciliation Not Required: Previously, platforms had to match sales data with import tax declarations. This is no longer required when goods are imported.
- One between the original seller and your platform.
- Another between your platform and the buyer.
2.Tax Exemption for First Transaction: The transaction between the seller and your platform is tax-exempt. In your VAT return, report this under item 220 (supplies exempt from tax).
- With the platform's consent, you can choose to tax this first transaction voluntarily.
- If you're a seller using simplified tax methods, you can switch to the effective reporting method if you meet certain conditions.
3.Importing Goods: If goods are imported into Switzerland, the first transaction (seller to platform) is considered to take place abroad. Sellers should report these as "supplies abroad" in their VAT return under item 221.
4.Platform Operators' Location: Whether your platform is based in Switzerland or abroad, these VAT rules apply to you.
5.Invoicing Details: If the original seller issues an invoice to the buyer that includes VAT, it must mention the platform operator and state that the transaction falls under Article 20a of the VAT Act. For example: "VAT at a rate of 8.1% reported to the FTA in accordance with Article 20a of the VAT Act by [platform operator's name and VAT number]."
6.Information Sharing: Unlike earlier drafts, from January 1, 2025, platform operators aren't required to automatically provide information to the Federal Tax Administration (FTA). Instead, you'll need to share information only if the FTA requests it.
7.Reconciliation Not Required: Previously, platforms had to match sales data with import tax declarations. This is no longer required when goods are imported.
When Do These Rules Apply?
- These rules apply to contracts made on your platform from January 1, 2025. Contracts made before this date aren't affected, even if the goods are delivered after January 1, 2025.
- If you supply goods to Switzerland that were previously exempt from import tax due to low tax amounts (small consignments), and you've made at least CHF 100,000 from these in the past 12 months, your tax obligations start on January 1, 2025.
For more details, refer to the Federal Tax Administration's guidelines on electronic platforms.
Frequently Asked Questions (FAQ)
The new VAT rules apply to operators of electronic platforms that connect sellers and buyers. Platforms based abroad are also affected if they facilitate sales to Swiss customers.
Platform operators are treated as suppliers for tax purposes to ensure proper VAT collection. This creates two transactions: one between the seller and the platform and another between the platform and the buyer.
No, the first transaction between the seller and the platform is VAT-exempt. The seller must declare this in their VAT return under item 220.
Yes, with the platform operator’s consent, the first transaction can be taxed voluntarily.
- The transaction between the seller and the platform is considered to take place outside Switzerland.
- Sellers must report these transactions as "supplies abroad" under item 221 in their VAT return.
If the original seller issues an invoice to the buyer that includes VAT, it must mention the platform operator as the supplier and include a reference to Article 20a of the VAT Act, e.g.:
"VAT at a rate of 8.1% reported to the FTA in accordance with Article 20a of the VAT Act by [platform operator’s name, VAT number]."
"VAT at a rate of 8.1% reported to the FTA in accordance with Article 20a of the VAT Act by [platform operator’s name, VAT number]."
No, platform operators no longer need to submit data automatically. They must only provide information upon request from the Federal Tax Administration (FTA).
No, as of 2025, platforms are no longer required to match sales data with import tax declarations.
- The rules apply to contracts concluded through the platform from January 1, 2025.
- Existing contracts remain unaffected, even if the goods are delivered after January 1, 2025.
If a platform has generated at least CHF 100,000 in revenue from VAT-exempt small consignments in the past 12 months, it will become subject to VAT as of January 1, 2025.
Contact Information
For more information about our services, the current legislation or to discuss the particular case, please contact:
Stockerstrasse, 45,
8002 Zurich
Baarerstrasse, 25,
6300 Zug
8002 Zurich
Baarerstrasse, 25,
6300 Zug