Update on Partial Revision of VAT Act as of 01.01.2025

• The partially revised VAT Act has been in effect since 01.01.2025
• Electronic platforms are subject to “platform taxation”
• Platforms must account for VAT on sales to customers to the tax authorities
• New regulations aim to impose a comprehensive tax obligation on foreign trading platforms in Switzerland
• Questions arise regarding platform taxation, but no guidance from the tax authorities is available yet
• Services provided by travel agencies are now subject to the “place of supply” principle
• Services of travel agencies are exempt from tax if provided abroad or if exempt under the VAT Act
• Subsidies are considered non-considerations for VAT purposes
• Subsidies require a reduction in input tax deduction for the recipient
• Taxpayers may challenge the classification of subsidies and must actively defend against it
• The VAT Info 05 “Subsidies and Donations” has been updated without providing practical guidance
• Trading in emissions and similar rights is subject to specific regulations

Source: primetax.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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