Switzerland: revised VAT regulation and reduced VAT rate come into force
2018-02-15 | News & Media

Switzerland: revised VAT regulation and reduced VAT rate come into force

The Swiss Value Added Tax (VAT) rate has been reduced since January 1, 2018. In particular, the standard VAT has decreased to 7.7%, while the special VAT rate for hotels has fallen to 3.7%. The reduced rate of 2.5% – that applies to everyday consumer goods such as foodstuffs, non-alcoholic beverages, books, newspapers, magazines, medicines and also to tickets for sports and cultural events – has not been changed. The change has prompted business owners and taxable persons to swiftly update tariffs, documents and invoices to reflect the change in the VAT rate. The rate was temporarily increased by 0.4% in 2011 to allow funding for disability welfare, but has reverted to the previous rate of 7.7% after the proposal of extending the extra revenue to fund the pension system has been dismissed in the September 2017 referendum.

In September, as Goldblum and Partners reported, Switzerland had also approved several amendments to the VAT regulation. They have also become effective from January 1. Since that date, foreign companies providing services in Switzerland are automatically liable to pay VAT on all of their turnovers – the previous norms established VAT was due only over a turnover of CHF 100,000. The new rules have the clear intent of removing competitive disadvantages for Swiss businesses against foreign companies.

Mail-order businesses will have more time to implement the changes – as they will be liable to VAT if their turnover from import-tax-free consignments is above CHF 100,000, however, only from 2019. The VAT will be charged to customers who, in turn, will not be due to pay import fees or levies.

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.

FINMA Gives Permission to Scan Chips during the Online Identification Process

News & Media

2021-05-24

FINMA Gives Permission to Scan Chips during the Online Identification Process

The Swiss Financial Market Supervisory Authority FINMA is updating the procedure of the online identification using the NFC verification by scanning the chip embedded in biometric identity documents.

FINMA publishes its enforcement actions

News & Media

2021-04-07

FINMA publishes its enforcement actions

The publishing of this case report confirms FINMA's accountability obligations regarding its enforcement activities. The case report includes anonymized and generalized cases which were concluded with a court decision.

The IPI and Swiss exporters unite to combat the “Swissness” misuse

News & Media

2021-04-06

The IPI and Swiss exporters unite to combat the “Swissness” misuse

Bern, April 04, 2021 – The Swiss Institute of Intellectual Property (IPI) took an active role in 280 cases of “Swissness” excessive use in 2020. The IPI controls the use of the Swiss national emblem and destroys such goods during the customs examination. Now private and high officials start working together to control the “Swissness” fare dodger abroad.

Start of finance.swiss information platform

News & Media

2020-12-15

Start of finance.swiss information platform

The Swiss Financial Market Supervisory Authority FINMA recommends that the supervised parties affected by the LIBOR replacement sign the new Fallback Protocol of the International Swaps and Derivatives Association (ISDA) in the shortest time possible.