As of January 1, 2025, new regulations have come into effect in Switzerland, impacting the sale of goods through online platforms such as Zalando.ch, Digitec.ch, and Galaxus.ch. Under these new rules, the responsibility for calculating, collecting, and remitting Swiss VAT is now placed on the platforms themselves.
On July 9, 2024, the Swiss tax authorities published a draft of the guidelines for these platform rules. This draft was open for public consultation until August 23, 2024, and the final guidelines are now in force.
Implications for Businesses Selling via Online Platforms
Under the new regulations, platforms are considered the actual suppliers for VAT purposes, regardless of whether the sale occurs between businesses (B2B), to consumers (B2C), or between private sellers (C2C and C2B). This means that platforms handle VAT obligations, but sellers must still be registered in Switzerland and report import, export, and the value of goods sold via marketplaces.
If a seller issues an invoice directly to the buyer, it must clearly state that the platform is responsible for handling VAT. The invoice should include a declaration such as:
“VAT at 8.1% reported to the FTA in accordance with Article 20a of the VAT Act by [platform name and VAT number].”
Purpose of the Changes
The new rules aim to streamline VAT collection and ensure fair competition between traditional retailers and online platforms. It is therefore crucial for businesses selling via platforms in Switzerland to review their processes and ensure compliance with the new requirements. Additionally, it is expected that digital platforms will introduce specific requirements for sellers.
If you have any questions about how your business should handle these changes, feel free to contact us for advice.
