Vehicle Subscription Services: Tax Treatment and Legal Considerations for Customers and Providers

• Vehicle subscription service provides customers with a vehicle as part of a mobility contract
• Services included in the subscription may vary, such as vehicle model, duration, insurance, maintenance, and more
• Customers pay a monthly fee to the rental company for the use of the vehicle
• The tax treatment of vehicle subscriptions is based on the actual consideration received
• The provision of the vehicle is considered the main element of the service, making it subject to VAT
• The service provider can deduct input tax in accordance with VAT regulations

Source: estv.admin.ch

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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