zsis) - Center for Swiss and International Tax Law

Parliament puts pressure on Billag VAT refunds

The Federal Council must create a legal basis so that the unlawfully levied VAT on radio and television reception fees can one day be repaid. Following the National Council, the Council of States has also approved a motion.

New VAT regulation Online shopping abroad could become more expensive from 2019

The Federal Council has decided that mail order companies with a turnover of at least CHF 100,000 in Switzerland must pay VAT. Foreign online merchants today do not have to pay VAT on small consignments with a tax amount of less than five francs. For Swiss mail order companies, however, different rules apply: The consignments are subject to VAT if the company is entered in the VAT register. From 1 January 2019, this unequal treatment will cease.

MWST: Publications on the Value Added Tax Act MWSTG

On 12 and 24 July 2018, substantive amendments concerning the publications on the partial revision of the VAT Act were published on the website of the FTA.

Applications for reduced rates

The Council of States wants to introduce a new VAT privilege for the hotel industry. It has accepted a motion by Stefan Engler, member of the Bündner CVP Council of States, calling for a "simplification" of packages. These are combinations of services or products that are taxed at different VAT rates. Today, the entire package is taxed at a reduced rate if at least 70 percent is subject to a reduced rate. Such combinations of services occur mainly in the hotel industry: The overnight stay taxed at a rate of 3.7 percent is combined with ski passes, wellness treatments or guided tours to form a package. This means that these services are also subject to the reduced hotel rate.