Switzerland Confirms Revisions to VAT Act

June 23, 2017

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This blog was last updated on June 27, 2021

The Federal Tax Administration has announced the following revisions to the VAT Act, effective January 1, 2018:

First, all companies resident in Switzerland and all companies providing services in Switzerland will be liable to collect and remit taxes in Switzerland if their global turnover from non–exempted services exceeds 100,000 CHF.
Second, the reduced rate (currently set at 2.5%) will apply to books, newspapers, and magazines.
Third, immovable property will now be subject to VAT.

Additional changes, such as voluntary taxation of exempt services and changes to the treatment of antiques, will also take effect. Finally, starting in January of 2019 suppliers of imported goods that are not subject to import tax (meaning VAT on the import is less than 5 CHF) will be liable to collect and remit tax in Switzerland if they exceed the 100,000 CHF threshold.

Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.

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