Global Daily Tax News, Switzerland Guides On New VAT Rules For Digital Platforms, (Jul 15, 2024)

On July 9, the Swiss Federal Tax Administration (FTA) released draft English-language guidance for digital platforms on value-added tax law changes that are expected to be implemented from January 1, 2025.

The guidance has been released in the form of a draft amendment to VAT-related practice in relation to the Revised Value Added Tax Act, which has not yet been approved by the Federal Council.

The guidance covers proposals to introduce obligations on digital platforms to be involved in the collection of value-added tax from business users on their platforms. Under certain conditions, the platform itself would be deemed to have itself supplied the goods and therefore itself be liable for value-added tax. These changes would be introduced from January 1, 2025.

The change will not affect services supplied through digital platforms.

All platforms, including those through which services are offered, will be subject to an obligation to provide information at the request of the Federal Tax Authority.