Switzerland is planning to vote on amendments to the VAT Act. Among other things, a new VAT threshold should be introduced. Currently, companies are not…
Switzerland is planning to vote on amendments to the VAT Act. Among other things, a new VAT threshold should be introduced. Currently, companies are not obligated to register for VAT purposes if the taxable supplies in Switzerland are less than CHF 100.000 p.a. In future, the company’s global sales should be decisive. In addition, the introduction of a distance-sales regime, comparable to Articles 33 and 34 of the VAT Directive 2006/112/EC, is planned.
The temporary VAT increase introduced on 1 January 2011 to finance disability insurance i.e. a 0.4 % increase in the standard tax rate, a 0.2 % increase in the accommodation tax rate and a 0.1 % increase in the reduced tax rate, expires at the end of 2017. The standard tax rate would then be reduced to 7.6 %, the tax rate for accommodation would be reduced to 3.6 % and the reduced tax rate would be reduced to 2.4 %. However, due to an increase in each tax rate of 0.1 % for financing the railway infrastructure, as of 1 January 2018 the tax rates would be 7.7 %, 3.7 % and 2.5 %. However, in order to fulfil pension claims, it is proposed that the current VAT rates remain unchanged at 8.0 %, 3.8 % and 2.5 %. Whether this is actually the case, depends on the outcome of a national referendum, which is expected to take place on 24 September 2017.
Küffner Maunz Langer Zugmaier, Germany