Key takeaways
- From January 1, 2025, Switzerland will introduce stricter VAT rules for online marketplaces and sellers, aligning its tax framework with the EU and UK.
- Marketplaces will become responsible for VAT registration, collection, and reporting on sales to Swiss consumers, regardless of seller location.
- Businesses must update systems and clarify VAT responsibilities before 2025 to remain compliant and avoid penalties or customs delays.
Switzerland will enforce stricter VAT regulations for online marketplaces and sellers starting January 1, 2025. These changes align Swiss tax practices with those in the EU and UK, promoting fairer competition between domestic and international businesses.
Current rules and gaps
Currently, foreign sellers are only required to collect Swiss VAT if their annual turnover exceeds CHF 100,000 on "small consignments" (shipments with import VAT under CHF 5). This has allowed many to avoid Swiss tax obligations.
From 2025, marketplaces facilitating sales to Swiss customers must comply with new regulations, regardless of seller location.
Low-value consignments remain exempt from VAT if import VAT is under CHF 5 (goods valued below CHF 62 or CHF 200 for reduced rates). This simplifies compliance for minor shipments.
Marketplace obligations
A marketplace is any digital platform facilitating transactions between third-party sellers and consumers. As recognized suppliers, marketplaces must register with Swiss tax authorities.
Registration rules:
- Mandatory: For platforms with turnover above CHF 100,000.
- Voluntary: Smaller platforms can register to act as importers of record, collect VAT, and streamline the customer experience.
Marketplaces are responsible for VAT collection, reporting, and remittance. Non-compliance can lead to penalties, including refusal of goods at customs or their destruction.
Impact on VAT-registered traders
VAT-registered traders may deregister for marketplace sales after December 31, 2024, if the platform assumes VAT responsibilities. However, merchants remain jointly liable for VAT debts, so clear tax responsibility agreements with platforms are essential.
Getting ready for 2025
To comply by January 2025, traders and platforms must register or deregister with the Swiss tax authorities and update their systems to meet the new requirements for import, invoicing, and VAT reporting.
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Frequently asked questions
What are the new Swiss VAT rules for online marketplaces in 2025?
Starting January 1, 2025, Switzerland will require online marketplaces selling to Swiss customers to register for VAT and collect tax on behalf of third-party sellers. This change aligns Swiss VAT rules with those in the EU and UK, ensuring fair competition between local and international businesses.
Do low-value consignments still qualify for VAT exemption in Switzerland?
Yes, small consignments with import VAT under CHF 5 remain exempt. This applies to goods valued below CHF 62 (standard rate) or CHF 200 (reduced rate). The exemption helps simplify compliance for low-value shipments while maintaining fair tax practices.
How should online sellers and marketplaces prepare for the 2025 VAT changes?
Marketplaces and traders should register or deregister with the Swiss tax authorities before January 2025, depending on who assumes VAT responsibility. Businesses must also update invoicing and reporting systems to meet the new Swiss VAT requirements and avoid potential customs delays or penalties.
