Federal Council initiates consultation on amendments to Value Added Tax Ordinance

Bern, 21.12.2016 - During its meeting on 21 December 2016, the Federal Council launched the consultation on the revised Value Added Tax Ordinance (VATO). With this revision, the ordinance will be brought into line with the partially revised Value Added Tax Act (VATA) adopted by Parliament in September. The revised VATA and its ordinance should enter into force on 1 January 2018.

The ordinance contains detailed regulations on the start and end of tax liability, for which a company's global turnover is now decisive and not just its Swiss turnover. In addition, it is also envisaged that companies which provide on Swiss territory only tax-exempt services do not have to be registered as taxpayers.

Furthermore, the ordinance clarifies that, due to their large volumes of cross-border import-tax-free consignments, distance selling companies will now be liable to tax in Switzerland and will have to levy VAT on all their deliveries. If an import tax is incurred in the process, this can be deducted as input tax according to the normal rules.

The electronic newspapers, magazines and books which will now be taxable at the reduced rate are defined in the ordinance to distinguish them in particular from other electronic services such as paid access to databases, which remain taxable at the normal rate.

Works of art, antiques and the like which are considered to be collectors' items are set out in detail in the ordinance. No deemed input tax can be deducted anymore when such articles are acquired. Instead, margin taxation is applicable upon resale.

In addition, the ordinance contains specifications for accounting with net tax rates and flat tax rates.

Address for enquiries

Patrick Teuscher, Head of Communications, Federal Tax Administration FTA
Tel. +41 58 464 90 00, media@estv.admin.ch