Switzerland: Value added tax (VAT) reform legislation | KPMG | GLOBAL
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Switzerland: Value added tax (VAT) reform legislation

Switzerland: Value added tax (VAT) reform legislation

The partial reform of the Swiss federal value added tax (VAT) law is intended to eliminate the competitive disadvantages of Swiss companies. The changes are scheduled to be effective 1 January 2018. The reformed law is expected to affect Swiss companies and foreign firms with business activities in Switzerland.


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Sectors affected by VAT reform

The holding company is one type of entity that is expected be affected by the VAT amendments. With respect to specific industrial sectors, it is anticipated that the following sectors would be affected by the VAT reform legislation:

  • Real estate (including construction companies)
  • Media
  • Energy suppliers
  • Providers of hotel restaurant services (including takeaways)
  • Political units

Dealers in works of art and antiques, as well as companies/organizations that are partially financed by donations and contributions from sponsors, may be affected. Taxpayers need to consider the potential changes that the VAT reform may have with respect to cross-border online trading—that is, new tax liabilities for online traders from outside Switzerland.

New obligation for foreign companies to register

Foreign companies with business activities in Switzerland would need to review their tax position in Switzerland, particularly because of provisions regarding the obligation to register for VAT purposes. A foreign company could be required to register even if its turnover is as little as CHF 1.


Read a January 2017 blog posting prepared by the KPMG member firm in Switzerland

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