Switzerland to introduce platform taxation from 2025
The Swiss Federal Department of Finance is planning to introduce further tax obligations on online marketplaces from 2025. Under this platform taxation project, all marketplace operators will account and remit the VAT on all supplies of imported goods that they facilitate.
The changes to the Swiss VAT Act are currently being consulted on by the authorities and should include strict measures to ensure e-commerce businesses meet their tax obligations in Switzerland. Among the changes schedules, the authorities would reserve the right to impose a ban on supplies by businesses who fail to comply with the new Swiss tax rules, and as a last resort, destroy the goods in question.
Additionally, a list of traders failing to fulfil their VAT obligations could be published to protect Swiss consumers. Lastly, the authorities will be able to request sellers’ information from marketplaces to monitor whether these traders should register for VAT when supplying services to Swiss end customers.