Switzerland: New obligation for streaming services to invest in Swiss filmmaking determined by VAT return
Obligation of streaming or television service providers to invest in Swiss filmmaking under the amended Film Act
Obligation for streaming services to invest in Swiss filmmaking determined by VAT return
Annual gross income reported in VAT returns will determine the obligation of streaming or television service providers to invest in Swiss filmmaking under the amended Film Act.
Background
The Film Act was amended by popular referendum on 15 May 2022 (by a vote of 58.4%). Under the amended law, any streaming or television service provider in Switzerland that generates annual gross income of more than CHF 2.5 million per year is obligated to invest 4% of their annual gross income generated in Switzerland in Swiss filmmaking (or pay a substitute levy to the Federal Office of Culture (FOC)). The obligation to invest will apply from 1 January 2024.
The draft ordinance on the amended law provides that the relevant gross income is determined based on companies' gross income for value added tax (VAT) purposes reported to the Swiss Federal Tax Administration. Streaming and television service providers in Switzerland must register with the public register maintained by the FOC, and companies must provide the FOC with copies of their VAT returns together with the corresponding annual financial statements by 30 April of the following year. The income declared in the VAT form in item 200 less items 221 and 235 is decisive of the relevant gross income.
The current consultation period for the draft ordinance runs until 17 February 2023.
Read a February 2023 report prepared by the KPMG member firm in Switzerland
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