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 Furthermore, a provision allowing alternative tax periods is withdrawn due to complexity.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.
Switzerland Seeks Feedback on Main VAT Changes
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Switzerland
Author: Ema Stamenković
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Content accuracy validation date:
26.12.2025
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The Swiss Government is seeking feedback on two major value-added tax law amendments.
The first proposal would enhance the tax rules governing bundled services. Current regulations allow several independent services offered as a package for a single price to be treated as a single supply of the main service for VAT purposes if the main service represents at least 70% of the total consideration. The proposal would lower this threshold to 55% to ease the administrative burden on businesses, particularly providing greater flexibility for tourism package providers. The new rules would apply only to package deals where the place of supply is in Switzerland.
The second proposal would expand the existing platform tax regime (introduced in January 2025 for mail-order goods) to include electronic services. Currently, foreign companies must register for VAT in Switzerland if they provide electronic services to customers based or domiciled there. The amendment would impose VAT payment obligations on platforms to ensure collection on electronic services provided through them. Electronic services include downloading and streaming of software, applications, films, and music, among others. The measure would not apply to online bookings of accommodation or passenger transport services.
Additionally, the legislation would withdraw a planned provision allowing taxpayers, upon request, to choose the business year as their tax period instead of the calendar year. The Government noted that this provision has not yet come into effect, as it only concerned a very small proportion of taxable persons, and other IT projects have therefore been given priority. Furthermore, a change in the tax period, combined with other options, would raise numerous legal questions, further increasing the complexity of VAT.
Feedback is sought on the proposals by March 20, 2026.
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