Switzerland – VAT compliance changes from 1 January 2025

The Swiss Parliament has approved a series of changes to its VAT Act, which will be effective from the 1st January 2025. These changes include:

• The introduction of deemed supplier rules for online marketplaces, which will require online marketplaces to collect and remit VAT on sales of low-value imported goods by non-resident suppliers to local Swiss consumers. The deemed supplier regime is applicable only to the supply of goods, not to the sales of digital services.
• The “place of supply” for streaming services in culture, arts, sports, education, science, and entertainment will be deemed to be where the recipient of the service is established or domiciled.
• VAT on menstrual products will be subject to the reduced rate of 2.6%.
• The following services will be exempted from VAT:
  Coordinated care services related to curative treatments
  Travel services resold by travel agencies
  Fees for the participation to cultural events
• The Swiss tax authorities may decide to not longer require the appointment of a local fiscal representative for non-resident VAT registered taxpayers.