Switzerland emission trading VAT reverse charge
- Jul 17, 2020 | Richard Asquith
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.
Need help with your Swiss VAT compliance?
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.