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Switzerland ends VAT relief low-value packages

  • Sep 30, 2016 | Richard Asquith

Switzerland ends VAT relief low-value packages

Switzerland is to end its VAT exemption on low-value packages being imported into the country. No implementation date has been set yet.

Currently, an imported delivery under a declared value of CHF200 is exempted from import VAT. The Swiss VAT rate is currently 8%, and 2.5% for books.

The measure is designed to support local online and bricks & mortar sellers who at a commercial disadvantage to foreign e-commerce sellers.

The European Union is considering a similar measure to eliminate its import VAT and duty exemptions - termed low value consignment relief.  The threshold for this varies across the region, but is generally €20 per package or lower.

In addition, non-resident providers of services in Switzerland will be required to VAT register if their global income is above CHF100,000 per annum. This measure is targeted at workers coming into Switzerland on a daily basis and able to charge for their services without VAT. It has been estimated that this measure will hit over 30,000 foreign companies and attract over CHF70million.

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. 

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.