New VAT Rules for E-Commerce in Switzerland From 2025

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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