Foreign visitors significantly impact Switzerland's economy; reducing VAT refund minimums aims to enhance competitiveness in shopping and tourism. Foreign visitors' purchases now play a big role in Switzerland's economy. Not only do watch and jewelry retailers benefit from tax-free shopping, but SMEs that sell goods in the lower to middle price range—such as souvenirs, specialty foods, handi... Read more

Switzerland is seeking feedback on VAT amendments: lowering the bundled services threshold from 70% to 55% for simplicity, and expanding the platform tax regime to electronic services, obligating platforms for VAT collection. Furthermore, a provision allowing alternative tax periods is withdrawn due to complexity. Feedback due by March 20, 2026. The Swiss Government is seeking feedback on two majo... Read more

Started in January 1, 2025, Swiss SMEs may choose annual VAT reporting if their taxable turnover is below CHF 5,005,000 and they have a compliant history. Applications via the SFTA ePortal are due by February 28, 2026. Advance payments are required, with specific deadlines and potential revocation conditions. As of January 1, 2025, Swiss VAT-registered small and medium-sized enterprises (SMEs) can... Read more

Businesses with low revenue can switch to annual VAT returns easily. Thousands of businesses are already submitting their VAT returns annually rather than quarterly. This is achievable for businesses with an annual revenue not surpassing CHF 5,005,000 and that have filed and settled their returns promptly for the last three years. Changing is easy and can be performed directly in the ePortal servi... Read more

Switzerland's tax increase delayed until 2028. Switzerland's tax authority stated the value-added tax rate rise from 8.1% to 8.8% is now delayed until 2028.This increase got approved back in October 2024. They anticipated it would commence in 2026. Read more

Foreign companies must register for VAT in Switzerland under several conditions, such as exceeding a global revenue threshold of CHF 100,000, storing goods in Switzerland, selling under the DDP Incoterm, or organizing events. To register, companies must appoint a Swiss tax representative and may need to deposit a tax bond, typically 3% of projected annual turnover. Required documents include the c... Read more

The Swiss VAT Act establishes VAT as a general consumption tax based on the net all-phase system with input tax deduction, designed to tax final domestic consumption. It defines the three types of VAT—domestic tax, acquisition tax on services from abroad, and import tax—while setting out fundamental principles such as competitive neutrality and efficiency. The Act provides comprehensive definitions of goods, services, remuneration, and taxable supplies, forming the basis for determining VAT liability. Read more