Switzerland launches a public consultation relating to new 2025 marketplace VAT deemed supplier rules

1 August 2024

Switzerland’s Federal Tax Administration launched a public consultation on its’ plan to impose deemed supplier rules from 1 January 2025 on digital platforms (such as Amazon) to charge, collect and remit VAT on sales of low value imported goods by non-resident suppliers to consumers in the country.

Current rules allow low-value consignments with a value of up to CHF 65 (approx. £57) to be imported and cleared VAT-free. However, any seller that exceeds CHF 100,000 (approx. £88,000) in sales of low-value goods must VAT register and charge VAT on sales in the country. This leaves the current process susceptible to VAT fraud as many non-resident companies are ignoring these requirements.

It is hoped that the introduction of these rules will help to level the playing field as it will guarantee that VAT will be collected on the sale of low-value goods via online platforms.

Switzerland has confirmed that the deemed supplier regime will not be extended to the sales of digital services.