News Value Added Tax
In a specialist article for WEKA Business Media, Matthias Höhn deals with the time at which the tax claim arises and shows why this has no effect on the VAT treatment of the supply itself.
Form 764 and documents relating to subsequent input tax deduction must now be submitted electronically via the Federal Tax Administration's e-Portal.
With the partial revision of the Value Added Tax Act (VAT Act) coming into effect on 1 January 2025, a deemed delivery will be assumed solely for VAT purposes when goods are supplied via an electronic platform operated by third parties. For VAT purposes only (not under civil law), the sale will be treated as a two-step process: a delivery from the seller to the platform and from the platform to the buyer. While these changes appear to place the primary obligation on platforms, they also have significant implications for sellers, including those not registered for VAT. Below is a brief overview of some key points.
The Federal Council enacted the partial revision of the Value Added Tax Act (VAT Act), passed by Parliament in June 2023, in August 2024, with effect from January 1, 2025. At the same time, the partially revised Value Added Tax Ordinance (VAT Ordinance) will also come into force. The VAT Ordinance includes adjustments that are not based on amendments to the VAT Act. One such adjustment concerns the change in reporting methods between the effective method and the balance and flat tax rates, and vice versa. With the revised VAT Ordinance, the current value of goods and services must be taken into account when changing. Accordingly, from January 1, 2025, this change presents both risks and opportunities.
In the future, the registration and settlement for value-added tax (VAT) is to be done exclusively electronically. This was decided by the Swiss Federal Council at its meeting on June 16, 2023. The amendment to the VAT Regulation will come into force on January 1, 2024.
Since January 1st 2018, Swiss companies (from a taxable turnover of CHF 100,000) must also register for VAT, even if they provide 100% of their services abroad.
In the vote of September 25, 2022, the amendment of the AHV law and the federal resolution on the additional financing of the AHV were approved, which is why new VAT rates will apply as from January 01, 2024:
The turnover limit for the VAT obligation of non-profit, voluntarily managed sports and cultural associations and non-profit institutions will be increased from Fr. 150 000 to Fr. 250 000 as of January 1, 2023.
New generally within 30 days
A newly published ruling by the Swiss Federal Supreme Court has relativised the previous practice concerning the VAT risks associated with a company acquisition.
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