Switzerland VAT News: 2019 sees further changes to Swiss VAT law.
Swiss VAT laws continue to change
Since 1 January 2018, any person or business with global turnover in excess of CHF 100,000 could be liable for VAT in Switzerland. As of 1 January 2019, e-commerce businesses shipping packages to Switzerland also became VAT liable. This means that if you want to continue doing business in Switzerland, you need to register with the tax authority.
Prior to 2019, no import VAT had to be paid when a consignment entered Switzerland if the value of the goods did not exceed CHF 65 (or CHF 200 for goods such as books that are subject to a reduced rate of VAT). So until now, customers haven’t had to pay any VAT on small consignments.
From January 1st 2019, small consignments sent to Switzerland from abroad are no longer exempt from Swiss VAT. Any seller that makes more than CHF 100,000 a year - or the equivalent - on low-value goods now also needs to register for VAT in Switzerland and charge Swiss VAT to customers receiving such consignments.
What should you do?
- Check whether you exceed the CHF 100,000 threshold.
- If you do, register with the Swiss VAT authorities.
- Start charging your Swiss customers VAT (at 7.7% or 2.5% depending on the goods).
It is up to each vendor or business to assess their own Swiss VAT situation and register if they meet the requirements. International VAT compliance can be time consuming and costly for internal staff to manage due to it's ever changing and complex nature.
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To get up to date with other VAT changes which have taken effect since Jan 1st 2019, check out our free VAT review.
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