Swiss VAT rates to be reduced as of 1 January 2018
Switzerland will reduce its VAT rates as of 1 January 2018. The new rates will be 7.7% for regular rate, 2.5% for reduced rate and 3.7% for special rate.
Swiss taxpayers: amend IT systems
Swiss taxpayers will have to amend their IT systems and will have to carefully analyze whether to charge the current 2017 VAT rate or the new VAT rate applicable as of 1 January 2018. This concerns supply of goods or services rendered during the phase-in between the end of 2017 and the beginning of 2018. Please note: the relevant VAT rate is determined by the time of the supply of goods or services and not by the date of the invoice nor the actual payment. Non-compliance can lead to costly tax leakage.
Foreign taxpayers: register for Swiss VAT
The Swiss federal tax administration issued guidance also in view of the revised Swiss VAT rules as of 1 January 2018. This will require any foreign entity to register for Swiss VAT if its global turnover from supply of goods or services exceeds CHF 100,000. The change mainly will affect non-resident entities which (i) supply goods to Switzerland and/or (ii) provide telecommunications/electronic services to Swiss consumers.
Beat BaumgartnerPartner Attorney at law, Swiss certified tax expert
Beat Baumgartner, attorney at law and Swiss certified tax expert, is a partner in our Zurich office. He focuses on Swiss and international taxation, M&A, financing and capital market transactions.T: +41 43 434 67 10 M: +41 79 930 63 52 E: email@example.com