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Switzerland emission trading VAT reverse charge

  • Jul 17, 2020 | Richard Asquith

Switzerland emission trading VAT reverse charge

Switzerland is to introduce the anti-VAT fraud domestic reverse charge measure on carbon emission trading. The response to likely major VAT evasion would amend the Swiss VAT law after a public consultation.

The reverse charge eliminates the cash payment of VAT on B2B transactions. Instead of the customer paying the seller based on a VAT sales invoice, the customer reports the VAT transaction to the authorities without a cash payment. Aside from B2B intra-community sales of goods and services, is also used within states in sectors where there is major VAT fraud suspected.

The EU has permitted member states to introduce the domestic reverse charge on B2B goods transactions above €17,500. However, no country has yet to adopt this.


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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 can be contacted at: richard.asquith@avalara.com. 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.