VAT revision in brief
In January 2025, the partial revision and ordinance of the VAT have come into force. Among other things, one of the major changes in this revision is the obligation to use the online portal available.
Major changes in the VAT revision
Obligation to use the online portal
As of January 2025, if a company is subject to VAT, the revision provides for a obligation to settle the latter via the online portal. Paper statements will no longer be provided or accepted.
You can choose between "VAT statement pro" and "VAT statement easy". With the pro version, you can create an account, while the easy version lets you settle as a guest.
The following procedures may benefit from an exception to the obligation to use the portal until 2027, such as :
- Requests for authorization for group taxation
- Adherence to the "net tax debt rate" or "flat rate" methods
- Withdrawal of declaration of liability
For online platforms
One of the major changes requested is the subjection of mandatory online sales platforms. Prior to this revision, foreign sellers (not domiciled in Switzerland) were not required to pay VAT in Switzerland, unless their sales were equal to or greater than CHF 100,000 and the consignments remained modest.
This has inevitably created unfair competition for Swiss companies. The VAT revision is therefore seeking to remedy this problem by making all sales platforms liable, even if the products sold come from foreign countries.
VAT exemption for tour operators
Prior to 2025, foreign tour operators sometimes had to pay VAT in Switzerland when organizing tours. To simplify administrative procedures and promote tourism in Switzerland, tour operators will be exempt from VAT on their services.
Reduced-rate menstrual hygiene products
To promote equality between men and women, the revised VAT will tax menstrual hygiene products such as tampons and pads at a reduced rate. The rate applied will rise from 8.1% to 2.6%.
Public grants
Before January 2025, when the state gave money to an organization to carry out a "legal" mission seen as essential (such as public transport subsidies), this sum was generally subject to VAT.
This raised ethical questions, since it seemed that public money was being partially taken back via VAT. With this revision of VAT, public authorities should receive more funds to carry out their activities.
New tax exclusions
To encourage participation in cultural activities (non-commercial), these activities will no longer be subject to VAT. In the past, amateur cultural activities were not always subject to VAT, although they could be.
The coordination services for medical treatment (organization of home care, medical appointments, etc.) could previously be subject to VAT, but the revision revokes this possibility.
Simplified VAT procedure
At present, VAT statements can be drawn up on a monthly, quarterly or half-yearly basis. The VAT revision changes this, and gives SMEs the opportunity to settle on a monthly, quarterly or half-yearly basis. annual basis.
This facilitates the billing and payment procedure, which will be carried out in instalments, calculated on the basis of the previous tax period. An instalment can be paid as early as 500 CHF if the effective method is used. For those using the net tax liability method, the minimum advance payment is CHF 1,000.
Battling fraud
Serial bankruptcies
The VAT overhaul is also designed to better combat tax fraud. When a company goes bankrupt, it often fails to pay the VAT it owes to the government. Some company directors abuse this system, letting their businesses go bankrupt only to start up a new one, in order to avoid paying VAT.
The FCA (Federal Tax Administration) will be entitled to request a financial guarantee from a company director if he or she has already been a member of the management of at least 2 companies that have gone bankrupt in a short period of time.
Emissions trading
By law, a business is allowed to produce a limited quantity of CO2 emissions over a given period. If a company pollutes less than expected, it can sell the surplus emissions rights. A company that exceeds its allocation can also buy rights.
This market is particularly vulnerable to VAT fraud. The Federal Council has approved the following measures to reduce this problem:
- The transfer of emission rights (as well as emission reduction certificates, guarantees of origin for electricity, etc.) will be subject to acquisition tax.
- This tax is paid directly by the buyer, even if the seller is based in Switzerland.
Frequently Asked Questions
What will change with the VAT revision in 2025?
From January 1, 2025, Switzerland will be implementing a partial VAT revision. A number of changes will come into effect, including the obligation to use an online portal for settlement, new reduced rates, changes for online sales platforms, and measures to combat fraud.
What's the difference between Décompte TVA easy and Décompte TVA pro?
The easy VAT statement lets you submit a statement as a guest, without creating an account. VAT statement pro, on the other hand, allows you to manage your file with a personal account, ideal for a more comprehensive follow-up.
Which companies are affected by the new liability of online platforms?
All the digital mail-order platforms must now declare and pay VAT on deliveries processed via their interface, even if the products come from abroad. The aim is to re-establish fair competition with Swiss companies.
Why are foreign tour operators now exempt from VAT?
For simplify administrative procedures and promote tourism in SwitzerlandForeign tour operators are no longer required to pay VAT on their services when organizing trips in Switzerland.
What rate will menstrual hygiene products be subject to from 2025?
Menstrual hygiene products such as pads and tampons are now taxed at a reduced rate of 2.6%, compared with 8.1% previously. This is intended to promote equity between women and men.
Are public subsidies always subject to VAT?
No. From 2025, if a public authority pays a subsidy for a task in the public interest (e.g. health or transport), this subsidy will no longer be subject to VAT.
