Platform taxation was introduced in Switzerland in the VAT Act as per 1 January 2025. The legislative background was to treat foreign companies selling via platforms in the same way as Swiss companies for VAT purposes. To this end, it is now the platform who is obliged to pay VAT and no longer the foreign e-commerce trader. The legislator hopes that this new regulation will generate additional tax revenue, as it is of course much easier to record platforms than foreign traders. Time will tell whether these considerations are correct.
ETL GLOBAL Member cmt ag provides VAT services to a large number of foreign retailers. Accordingly, various steps had to be taken as per 31 December 2024 in order to be prepared for the legislative changes. For example, they had to delete all retailers who sell goods to end customers exclusively via platforms like Galaxus, Zalando, Manor, etc. from the Federal Tax Administration’s (FTA’s) VAT register, as these sales are now being taxed directly by the platform.
For customers who maintain other sales channels in addition to platform sales (e.g. their own web shop), deregistration does not make sense, as they continue to file VAT declarations.
For the following example cmt AG requested a ruling from the FTA:
Customer XY delivers to Swiss customers via both, a platform and via its own webshop. Registration has been valid since 2022 and XY holds a declaration of subordination (“Unterstellungserklärung Ausland”).
- Platform turnover
With the consent of the platform operator, XY can import the goods in its own name (Art. 111b VAT Ordinance). If he does so, the place of delivery of both the delivery from XY to the platform and the second delivery from the platform to the buyer is in Switzerland. In this case, the first delivery from XY to the platform is deemed to have been made in Switzerland in accordance with Art. 23 para. 2 no. 13 of the VAT Act and is exempt from VAT.
The platform issues a monthly credit note to XY. This is considered sufficient proof by the FTA. For this purpose, the total remuneration from the sales of goods per month must be declared under item 200 of the corresponding VAT statement. The net sales of goods (tax-exempt sales) must then be declared under item 220 of the VAT statement and the returns of goods (reductions in remuneration) under item 235.
XY may claim the import tax assessed by the Customs Authority (CA) as input tax if it can prove that it has paid it and if it is actually the importer of the goods for VAT purposes. For this purpose, XY is required to present the customs assessment decision or its electronic version.
- Turnover from own webshop
There are no changes to the ‘old’ law for turnover via the own webshop. Our client imports the goods into Switzerland and issues the customer invoice with Swiss VAT (place of delivery Switzerland). Our client must pay tax on these deliveries to the FTA at the statutory VAT rate and pay the VAT. The return of goods is considered a reduction in payment and can be deducted from the turnover.
Conclusion:
Customers who generate platform sales need to take care of those platform sales before making their VAT declaration. In the case of XY, the monthly credit note issued by the platform has provided sufficient evidence. We are aware that other platforms provide their clients with detailed statements instead. In any way, it is important that the statements are reconciled with the foreign accounting department so that all Swiss sales are declared.
More Information (in German language):
Plattformbesteuerung – die erste Abrechnung steht bevor – cmt ag
Neue Mehrwertsteuer-Regeln für Online-Händler:innen in der Schweiz
