Federal Council adopts dispatch on amendment of the Value Added Tax Act

The following innovations are envisaged:

• Online mail order platforms are now considered to be service providers for the deliveries they have facilitated and are thus subject to VAT (incl. enforcement mechanisms).
• Exemption of foreign tour operators from tax liability if they organise tours to Switzerland.
• Reduced tax rate for feminine hygiene products.
• It is also introduced that a use of funds designated as a subsidy by a community is also considered a subsidy for VAT purposes.
• New tax exemption for active participation in cultural events. This also applies to services of coordinated care in connection with curative treatments.
• In future, SMEs will be able to voluntarily settle VAT on an annual basis.
• Possibility for the FTA to exempt foreign companies from the obligation to appoint a tax representative in Switzerland if fulfilment of the procedural obligations is ensured in another way.
• General purchase tax liability for the transfer of emission rights, certificates and attestations for emission reductions, guarantees of origin for electricity and similar rights.

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