Ottobre 20, 2022

VAT: news from Switzerland

Switzerland

In Switzerland, the increased ageing of population is stressing the public pension system, in constant need of additional funding. To address the issue, a referendum was held last 25 September to decide on an increase in the VAT rates. By a majority of 55.07%, people voted to raise the current VAT rates. 

Because of the referendum, the standard Swiss VAT rate will be increased from 7.7% to 8.1%. The reduced rate will become 2.6% (from 2.5%), and the special rate for accommodation will increase from 3.7% to 3.8%.

The new rates are scheduled to be effective on 1 January 2024. The Federal Council is expected to approve the new rules in December.

Another news: the Swiss tax administration plans to replace the current online platform ESTV SuisseTax with the online platform ePortal at the beginning of November 2022. The aim of the replacement is to bring more services into a single portal.

The existing ESTV SuisseTax services will be available in ePortal. The transition from ESTV SuisseTax to ePortal will be carried out easily for users, as the user will be redirected to ePortaldirectly.

The new ePortal would merge the below tax topics:

VAT declarations: the tools provided to prepare and submit VAT declarations will be accessible in the ePortal. VAT declarations previously submitted via ESTV SuisseTax will be transferred and made accessible in the new ePortal as well.

User-friendly VAT declaration: the new platform will make it easier to prepare and submit VAT returns.

VAT certificate: the user can request company and registration certificates online.

National withholding tax: an online withholding tax process will be introduced to replace forms F103, F110 and 25. The paper forms will disappear, in other words, they will only survive for a transitional period.

Broadcasting company fee: collection of broadcasting tax will take place through the new portal.

Existing authorisations: all authorisations will be managed via the new portal. Existing data and authorisations on ESTV SuisseTax will be transferred to ePortal.