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Swiss scrap VAT exemption on foreign e-commerce 2019

  • Aug 16, 2018 | Richard Asquith

Swiss scrap VAT exemption on foreign e-commerce 2019

On 15 August, Switzerland’s Federal Council confirmed that it will scrap the low value VAT exemption on imports of goods bought from foreign e-commerce providers. The current threshold is CHF 62.50 for goods with a standard rating of 7.7% Swiss VAT. The threshold on books is CHF 200 since they attract only 2.5% VAT in Switzerland. The dropping of the exemption will come into effect on 1 January 2019.

Any non-resident online retailer selling more than CHF100,000 per annum to Swiss consumers will need to VAT register in Switzerland, and charge VAT. This requirement was introduced on 1 January 2019.

The measure had originally been intended for implementation on 1 January 2018.

The European Union is proposing a similar removal of its low-value consignment stock relief threshold for 2021. The threshold in the EU28 member states averages €20 per consignment.

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Researching Swiss VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.