VAT in Switzerland: New tax rules for digital platforms

Since 1 January, digital platforms facilitating the sale of goods must assume new tax responsibilities in Switzerland. Now they are in charge of collecting VAT on sales made on their interface, including when sellers are located abroad. The platforms are therefore now responsible for VAT on sales delivered on Swiss territory.

Let us take a concrete example: until 31 December 2024, when a foreign seller sold a product to a Swiss customer via Amazon, the seller was responsible for VAT, provided that its turnover exceeded the threshold of 100 000 francs. From now on, as a platform facilitating the transaction, Amazon must ensure the collection of VAT on the sale, regardless of the origin of the seller. This means that if a Swiss consumer buys the product from a foreign based seller on the Amazon website, Amazon will have to collect the VAT on the product and pay it to the Swiss tax authorities.

Moreover, if the turnover of a digital platform generated by small shipments to Switzerland exceeds 100,000 Swiss francs, it will have to register for VAT in Switzerland. As an importer, the importer will have to charge VAT on deliveries and pay it on importation, although the payment can be deferred via the VAT declaration, thus reducing the impact on cash flow.

Platforms not involved in the ordering process or not generating sales revenue are exempt from these obligations. Similarly, those who are content with services such as processing payments or promoting goods via advertisements will not be affected.

This reform aims to simplify tax management for platforms, while ensuring greater transparency for Swiss consumers. The companies concerned will have to adapt to these new obligations by checking their tax status and anticipating the necessary administrative procedures. Thus, digital platforms will have to take the necessary steps to comply with these new rules, ensuring a clearer and more predictable shopping experience for Swiss consumers.