Follows SWI Tax May 2023 noted in force dates of tax law for 2024-27, see #172371.
Overview
SWI PRL approved the partial revision of Value Added Tax Act (MWSTG) in Jun. 2023.
The changes can be divided into thematic blocks of digitalization, internationalization simplifications, tax reductions and combating fraud.
Referendum deadline passed on Oct. 5 unused; entry into force planned: Jan 1, 2025.
Key Aspects
SWI PRL had called for following reforms in various initiatives e.g. online mail order platforms should be considered service providers and therefore subject to VAT.
Foreign tour operators should be exempt from tax liability when organize trips to SWI.
Monthly hygiene products should be subject to reduced tax rate; subsidies provided by communities should not be subject to VAT if they are used to fulfill basic legal tasks.
New tax exemptions are to be introduced for active participation in cultural events and for coordinated care services in connection with medical treatments; details on each.
Additional Provisions
Besides the above-mentioned the Federal Council also introduced innovations.
I.e. in the future, SMEs should be able to voluntarily settle their VAT annually.
SWI Tax should also be able to exempt foreign companies from obligation to appoint a tax representative in SWI if fulfillment of procedural duties ensured in another way.
SWI Tax should also be able to demand security from members of the executive bodies of companies for taxes, interest and costs of their company.
That, if they run several companies gone bankrupt within a short period of time, it is measure against the so-called serial bankruptcies.
Purchase tax obligation should now apply to transfer of emission rights, certificates, certificates for emission reductions, guarantees of origin for electricity, similar rights.
Consultation
From Jun. to Oct. 2020, Federal Department of Finance conducted a consultation on partial revision of the VAT Act and partial revision of VAT Ordinance.
24 cantons, 5 parties and 63 organizations commented; most measures welcomed.
Ordinance and Other
Stated consultation on the VAT Ordinance (MWSTV) will be opened in autumn 2023.
The practice for partial revision of VAT Act is planned to be published in early 2025.
Dec. 19, 2023 Updated Version
On Dec. 19, 2023, SWI Tax published version of the VAT law with changes from 2025.
